Encompass Health (NYSE:EHC) Cut to Hold at Wall Street Zen

Posted by Stanley Muller on Aug 11th, 2026

Wall Street Zen lowered shares of Encompass Health (NYSE:EHC – Free Report) from a buy rating to a hold rating in a research note issued to investors on Saturday morning.

A number of other research firms also recently weighed in on EHC. UBS Group upped their price target on Encompass Health from $150.00 to $155.00 and gave the stock a “buy” rating in a research report on Friday. Truist Financial boosted their price objective on shares of Encompass Health from $140.00 to $150.00 and gave the stock a “buy” rating in a research report on Friday. Leerink Partners set a $152.00 target price on shares of Encompass Health in a report on Friday, May 22nd. TD Cowen assumed coverage on shares of Encompass Health in a research report on Thursday, May 28th. They issued a “buy” rating and a $125.00 target price for the company. Finally, Barclays lifted their price target on shares of Encompass Health from $140.00 to $144.00 and gave the company an “overweight” rating in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $148.71.

Get Our Latest Stock Analysis on Encompass Health

Encompass Health Stock Performance

Shares of Encompass Health stock opened at $125.78 on Friday. The firm has a market cap of $12.48 billion, a price-to-earnings ratio of 20.49, a price-to-earnings-growth ratio of 2.52 and a beta of 0.72. The stock’s 50-day moving average is $107.37 and its 200-day moving average is $104.81. Encompass Health has a one year low of $92.77 and a one year high of $127.99. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.19 and a quick ratio of 1.17.

Encompass Health (NYSE:EHC – Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $1.55 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.48 by $0.07. Encompass Health had a return on equity of 18.08% and a net margin of 10.01%.The business had revenue of $1.60 billion during the quarter, compared to the consensus estimate of $1.57 billion. During the same period last year, the company earned $1.40 earnings per share. Encompass Health’s quarterly revenue was up 9.6% on a year-over-year basis. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. Equities analysts predict that Encompass Health will post 6.07 earnings per share for the current fiscal year.

Encompass Health Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Thursday, October 1st will be paid a dividend of $0.21 per share. The ex-dividend date is Thursday, October 1st. This represents a $0.84 dividend on an annualized basis and a dividend yield of 0.7%. This is an increase from Encompass Health’s previous quarterly dividend of $0.19. Encompass Health’s dividend payout ratio (DPR) is currently 12.38%.

Hedge Funds Weigh In On Encompass Health

Several hedge funds and other institutional investors have recently made changes to their positions in EHC. BlackRock Inc. bought a new stake in Encompass Health during the second quarter worth $1,059,762,000. Price T Rowe Associates Inc. MD increased its stake in shares of Encompass Health by 24.6% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 4,805,413 shares of the company’s stock worth $510,047,000 after purchasing an additional 948,202 shares during the last quarter. Northwestern Mutual Wealth Management Co. increased its stake in shares of Encompass Health by 3,059,159.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,793,482 shares of the company’s stock worth $402,640,000 after purchasing an additional 3,793,358 shares during the last quarter. Wellington Management Group LLP raised its holdings in shares of Encompass Health by 21.7% in the 4th quarter. Wellington Management Group LLP now owns 3,384,877 shares of the company’s stock valued at $359,271,000 after purchasing an additional 603,472 shares during the period. Finally, T. Rowe Price Investment Management Inc. lifted its stake in Encompass Health by 27.2% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 2,722,887 shares of the company’s stock valued at $289,008,000 after purchasing an additional 581,812 shares during the last quarter. 97.25% of the stock is owned by institutional investors.

Encompass Health Company Profile

(Get Free Report)

Encompass Health Corporation is a leading provider of post‐acute healthcare services in the United States, operating a comprehensive network of inpatient rehabilitation hospitals and home health and hospice agencies. Its inpatient rehabilitation hospitals offer intensive therapy programs for patients recovering from conditions such as stroke, brain injury, spinal cord injury, cardiac and pulmonary disorders, and orthopedic procedures. Through its home health segment, Encompass Health delivers skilled nursing, physical therapy, occupational therapy and speech therapy to patients in the comfort of their homes, while its hospice services provide end‐of‐life care focused on symptom management and emotional support for patients and families.

Founded in 1984 as HealthSouth Corporation and rebranded as Encompass Health in 2018, the company has grown organically and through acquisitions to serve patients across more than 30 states.