Leerink Partnrs Brokers Increase Earnings Estimates for EHC

Encompass Health Co. (NYSE:EHC) – Stock analysts at Leerink Partnrs raised their FY2026 EPS estimates for shares of Encompass Health in a research note issued to investors on Wednesday, October 30th. Leerink Partnrs analyst W. Mayo now anticipates that the company will earn $5.00 per share for the year, up from their prior estimate of $4.71. Leerink Partnrs currently has a “Strong-Buy” rating on the stock. The consensus estimate for Encompass Health’s current full-year earnings is $4.28 per share.

Encompass Health (NYSE:EHC) last posted its quarterly earnings results on Monday, October 28th. The company reported $1.03 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.94 by $0.09. Encompass Health had a return on equity of 17.60% and a net margin of 8.10%. The firm had revenue of $1.35 billion for the quarter, compared to analysts’ expectations of $1.33 billion. During the same period in the prior year, the business earned $0.86 EPS. The company’s revenue for the quarter was up 11.9% compared to the same quarter last year.

EHC has been the subject of a number of other research reports. KeyCorp boosted their price target on shares of Encompass Health from $115.00 to $117.00 and gave the company an “overweight” rating in a research note on Tuesday, October 29th. Stephens reissued an “overweight” rating and set a $105.00 target price on shares of Encompass Health in a research report on Tuesday, August 6th. Royal Bank of Canada raised their price target on shares of Encompass Health from $105.00 to $110.00 and gave the company an “outperform” rating in a research report on Wednesday, October 30th. Leerink Partners started coverage on Encompass Health in a report on Wednesday, July 10th. They set an “outperform” rating and a $100.00 price objective for the company. Finally, Truist Financial restated a “buy” rating and issued a $116.00 target price (up previously from $108.00) on shares of Encompass Health in a report on Wednesday, October 30th. Nine analysts have rated the stock with a buy rating and two have given a strong buy rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Buy” and a consensus price target of $107.11.

Encompass Health Stock Performance

Shares of Encompass Health stock opened at $100.23 on Monday. The business has a 50-day simple moving average of $94.66 and a 200 day simple moving average of $89.09. The firm has a market capitalization of $10.09 billion, a price-to-earnings ratio of 24.21, a PEG ratio of 1.32 and a beta of 0.88. The company has a debt-to-equity ratio of 0.88, a current ratio of 1.04 and a quick ratio of 1.35. Encompass Health has a one year low of $62.58 and a one year high of $102.36.

Encompass Health Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, January 15th. Investors of record on Thursday, January 2nd will be given a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a yield of 0.68%. The ex-dividend date is Thursday, January 2nd. Encompass Health’s payout ratio is 16.43%.

Encompass Health declared that its Board of Directors has approved a stock repurchase plan on Wednesday, July 24th that permits the company to buyback $500.00 million in shares. This buyback authorization permits the company to purchase up to 5.4% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s management believes its stock is undervalued.

Insiders Place Their Bets

In other news, CFO Douglas E. Coltharp sold 12,260 shares of the firm’s stock in a transaction on Tuesday, August 13th. The shares were sold at an average price of $86.34, for a total transaction of $1,058,528.40. Following the sale, the chief financial officer now owns 136,227 shares in the company, valued at approximately $11,761,839.18. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Corporate insiders own 2.10% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Commonwealth Equity Services LLC increased its stake in Encompass Health by 1.3% in the 2nd quarter. Commonwealth Equity Services LLC now owns 9,845 shares of the company’s stock worth $845,000 after purchasing an additional 123 shares during the period. V Square Quantitative Management LLC grew its holdings in shares of Encompass Health by 53.0% in the third quarter. V Square Quantitative Management LLC now owns 404 shares of the company’s stock worth $39,000 after purchasing an additional 140 shares during the last quarter. O Shaughnessy Asset Management LLC increased its stake in shares of Encompass Health by 3.9% in the first quarter. O Shaughnessy Asset Management LLC now owns 4,246 shares of the company’s stock worth $351,000 after buying an additional 160 shares during the period. Verdence Capital Advisors LLC raised its holdings in Encompass Health by 4.6% during the 3rd quarter. Verdence Capital Advisors LLC now owns 3,670 shares of the company’s stock valued at $355,000 after buying an additional 160 shares during the last quarter. Finally, Mount Yale Investment Advisors LLC grew its holdings in Encompass Health by 6.6% in the 2nd quarter. Mount Yale Investment Advisors LLC now owns 2,749 shares of the company’s stock worth $236,000 after acquiring an additional 170 shares during the last quarter. 97.25% of the stock is owned by institutional investors.

About Encompass Health

Encompass Health Corporation provides post-acute healthcare services in the United States and Puerto Rico. It owns and operates inpatient rehabilitation hospitals that provide medical, nursing, therapy, and ancillary services. The company provides specialized rehabilitative treatment on an inpatient basis to patients who have experienced physical or cognitive disabilities or injuries due to medical conditions, such as strokes, hip fractures, and various debilitating neurological conditions.