William Blair Issues Optimistic Outlook for EHC Earnings

Encompass Health Co. (NYSE:EHC) – William Blair lifted their Q2 2025 EPS estimates for shares of Encompass Health in a report issued on Monday, April 28th. William Blair analyst J. Haase now expects that the company will post earnings of $1.14 per share for the quarter, up from their prior estimate of $1.12. William Blair currently has a “Outperform” rating on the stock. The consensus estimate for Encompass Health’s current full-year earnings is $4.80 per share. William Blair also issued estimates for Encompass Health’s Q3 2025 earnings at $1.16 EPS, Q4 2025 earnings at $1.29 EPS, FY2025 earnings at $4.96 EPS and FY2026 earnings at $5.56 EPS.

EHC has been the topic of several other research reports. StockNews.com raised shares of Encompass Health from a “hold” rating to a “buy” rating in a research note on Friday. KeyCorp upped their target price on shares of Encompass Health from $120.00 to $122.00 and gave the stock an “overweight” rating in a research note on Friday. Barclays upped their target price on shares of Encompass Health from $118.00 to $129.00 and gave the stock an “overweight” rating in a research note on Friday. UBS Group upped their target price on shares of Encompass Health from $117.00 to $130.00 and gave the stock a “buy” rating in a research note on Monday. Finally, Royal Bank of Canada upped their target price on shares of Encompass Health from $110.00 to $125.00 and gave the stock an “outperform” rating in a research note on Monday. Nine analysts have rated the stock with a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the company currently has a consensus rating of “Buy” and an average target price of $120.86.

Encompass Health Trading Up 1.7 %

NYSE:EHC opened at $115.35 on Tuesday. Encompass Health has a one year low of $82.38 and a one year high of $116.20. The company has a debt-to-equity ratio of 0.84, a current ratio of 1.05 and a quick ratio of 1.04. The company’s 50-day simple moving average is $100.35 and its 200 day simple moving average is $98.71. The firm has a market capitalization of $11.62 billion, a P/E ratio of 25.86, a PEG ratio of 2.31 and a beta of 0.87.

Encompass Health (NYSE:EHC) last announced its earnings results on Thursday, April 24th. The company reported $1.37 earnings per share for the quarter, beating analysts’ consensus estimates of $1.19 by $0.18. Encompass Health had a net margin of 8.48% and a return on equity of 17.56%. The firm had revenue of $1.46 billion for the quarter, compared to analyst estimates of $1.43 billion. During the same quarter in the previous year, the firm posted $1.12 EPS. The company’s revenue for the quarter was up 10.6% compared to the same quarter last year.

Encompass Health Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, April 15th. Shareholders of record on Tuesday, April 1st were issued a dividend of $0.17 per share. The ex-dividend date of this dividend was Tuesday, April 1st. This represents a $0.68 dividend on an annualized basis and a yield of 0.59%. Encompass Health’s dividend payout ratio is currently 15.25%.

Insider Buying and Selling at Encompass Health

In related news, CAO Andrew L. Price sold 5,042 shares of the company’s stock in a transaction on Thursday, February 13th. The shares were sold at an average price of $98.29, for a total value of $495,578.18. Following the completion of the transaction, the chief accounting officer now owns 69,164 shares of the company’s stock, valued at approximately $6,798,129.56. This represents a 6.79 % decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. 2.10% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of EHC. T. Rowe Price Investment Management Inc. bought a new position in Encompass Health in the 4th quarter worth $152,953,000. Norges Bank bought a new position in Encompass Health in the 4th quarter worth $100,637,000. Raymond James Financial Inc. purchased a new position in Encompass Health during the fourth quarter valued at $77,944,000. Jennison Associates LLC bought a new stake in Encompass Health in the 4th quarter valued at $52,094,000. Finally, Farallon Capital Management LLC lifted its stake in Encompass Health by 15,266.7% in the 4th quarter. Farallon Capital Management LLC now owns 461,000 shares of the company’s stock worth $42,573,000 after purchasing an additional 458,000 shares in the last quarter. Institutional investors own 97.25% of the company’s stock.

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.