Hsbc Holdings PLC acquired a new stake in shares of Encompass Health Corporation (NYSE:EHC – Free Report) during the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 237,052 shares of the company’s stock, valued at approximately $23,861,000. Hsbc Holdings PLC owned 0.24% of Encompass Health at the end of the most recent quarter.
A number of other large investors have also modified their holdings of the company. Ancora Advisors LLC bought a new position in Encompass Health in the second quarter worth $10,639,000. Canada Pension Plan Investment Board bought a new stake in Encompass Health in the 2nd quarter valued at $7,723,000. Legal & General Group Plc acquired a new position in shares of Encompass Health in the 2nd quarter valued at $14,405,000. The Manufacturers Life Insurance Company acquired a new position in shares of Encompass Health in the 2nd quarter valued at $13,532,000. Finally, L2 Asset Management LLC bought a new position in shares of Encompass Health during the 2nd quarter worth about $492,000. 97.25% of the stock is currently owned by institutional investors and hedge funds.
Trending Headlines about Encompass Health
Here are the key news stories impacting Encompass Health this week:
- Positive Sentiment: Zacks raised its FY2026 EPS forecast to $6.03 from $5.96, increased FY2027 EPS to $6.42 from $6.35, and lifted FY2028 EPS to $7.18 from $7.16. The revisions indicate analysts continue to expect earnings growth over the next several years. Encompass Health analyst estimates
- Positive Sentiment: Quarterly estimates were also raised for Q1 2027, to $1.65 EPS from $1.63; Q2 2027, to $1.64 from $1.60; Q3 2027, to $1.49 from $1.48; and Q2 2028, to $1.87 from $1.84. These increases modestly improve the longer-term earnings outlook.
- Neutral Sentiment: Zacks’ FY2026 forecast of $6.03 remains slightly below the broader analyst consensus of approximately $6.08-$6.09 per share. This indicates that the revisions are constructive overall but do not represent a major upside surprise.
- Negative Sentiment: Zacks reduced its Q3 2026 EPS estimate to $1.35 from $1.36, Q4 2026 EPS to $1.53 from $1.55, and Q1 2028 EPS to $1.77 from $1.80. Lower near-term estimates could weigh on the stock because they point to slightly softer earnings momentum in upcoming reporting periods.
Encompass Health Stock Down 1.0%
Encompass Health (NYSE:EHC – Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $1.55 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.48 by $0.07. The firm had revenue of $1.60 billion during the quarter, compared to the consensus estimate of $1.57 billion. Encompass Health had a net margin of 10.01% and a return on equity of 18.08%. The firm’s quarterly revenue was up 9.6% on a year-over-year basis. During the same period last year, the firm posted $1.40 EPS. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. Equities research analysts anticipate that Encompass Health Corporation will post 6.08 EPS for the current fiscal year.
Encompass Health Increases Dividend
The company also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Thursday, October 1st will be paid a $0.21 dividend. 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. The ex-dividend date is Thursday, October 1st. Encompass Health’s dividend payout ratio is presently 12.38%.
Insider Activity at Encompass Health
In other Encompass Health news, CEO Mark J. Tarr sold 173,148 shares of Encompass Health stock in a transaction on Monday, August 10th. The stock was sold at an average price of $125.47, for a total value of $21,724,879.56. Following the completion of the transaction, the chief executive officer owned 267,814 shares in the company, valued at approximately $33,602,622.58. The trade was a 39.27% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP John Patrick Darby sold 8,906 shares of the business’s stock in a transaction on Monday, August 10th. The stock was sold at an average price of $125.95, for a total value of $1,121,710.70. Following the completion of the transaction, the executive vice president directly owned 75,041 shares in the company, valued at approximately $9,451,413.95. This represents a 10.61% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 1.80% of the stock is owned by insiders.
Analyst Upgrades and Downgrades
Several analysts have recently weighed in on the stock. UBS Group lifted their target price on shares of Encompass Health from $150.00 to $155.00 and gave the company a “buy” rating in a research report on Friday, August 7th. Truist Financial raised their price target on shares of Encompass Health from $140.00 to $150.00 and gave the stock a “buy” rating in a research note on Friday, August 7th. Leerink Partners set a $152.00 price objective on Encompass Health in a report on Friday, May 22nd. Wall Street Zen upgraded Encompass Health from a “hold” rating to a “buy” rating in a research note on Sunday, August 16th. Finally, TD Cowen increased their target price on Encompass Health from $125.00 to $140.00 and gave the stock a “buy” rating in a report on Monday, August 10th. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat, Encompass Health currently has a consensus rating of “Buy” and a consensus target price of $148.71.
View Our Latest Analysis on EHC
Encompass Health Company Profile
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.
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