Encompass Health (NYSE:EHC) Stock Breaks Above Fifty Day Moving Average – Here’s What Happened

Posted by Brian Himes on Oct 31st, 2026

Shares of Encompass Health Corporation (NYSE:EHC – Get Free Report) passed above its fifty day moving average during trading on Thursday. The stock has a fifty day moving average of $122.58 and traded as high as $133.75. Encompass Health shares last traded at $131.7410, with a volume of 2,197,535 shares trading hands.

Encompass Health News Summary

Here are the key news stories impacting Encompass Health this week:

Positive Sentiment: Q3 results exceeded expectations: Encompass Health reported adjusted earnings of $1.52 per share, above the $1.36 consensus estimate and up from $1.23 a year earlier. Revenue rose 8.9% year over year to $1.61 billion, while adjusted EBITDA increased 15.5% to $346.6 million. Encompass Health Q3 Earnings and Revenues Top Estimates
Positive Sentiment: Full-year guidance was raised: Management now expects 2026 adjusted EPS of $6.23 to $6.37, above the prior range of $6.02 to $6.25 and higher than the $6.11 analyst consensus. Revenue guidance remains approximately $6.5 billion. Encompass Health Climbs After Q3 Results Top Expectations and Guidance Is Raised
Positive Sentiment: Patient-care metrics remained healthy: Quarterly discharges increased 5.7%, same-store discharges rose 3.0%, and net patient revenue per discharge improved 4.0%, supporting the view that demand for inpatient rehabilitation services remains strong. Encompass Health Q3 2026 Earnings Call Transcript
Positive Sentiment: TD Cowen became more bullish: The firm raised its price target from $140 to $150 and assigned a “Buy” rating, implying further upside based on the referenced share price. TD Cowen Raises Encompass Health Price Target
Neutral Sentiment: Valuation commentary was favorable: Zacks identified EHC as a strong value stock, although the report appears to be based primarily on its quantitative Style Scores rather than a new fundamental development. Why Encompass Health Is a Strong Value Stock
Negative Sentiment: Insider selling is a watchpoint: Recent data shows company insiders made no open-market purchases and sold shares during the past six months. These transactions may reflect diversification or planned selling, but they provide a modest counterpoint to the otherwise positive earnings news. Encompass Health Insider Trading and Earnings Analysis

Wall Street Analyst Weigh In

Several research analysts have issued reports on the company. Truist Financial reiterated a “buy” rating and set a $156.00 price objective (up from $150.00) on shares of Encompass Health in a research note on Friday. Raymond James Financial restated a “strong-buy” rating and issued a $155.00 target price on shares of Encompass Health in a research note on Friday. KeyCorp upped their target price on shares of Encompass Health from $147.00 to $150.00 and gave the stock an “overweight” rating in a report on Friday. Wall Street Zen upgraded shares of Encompass Health from a “hold” rating to a “buy” rating in a research report on Saturday. Finally, TD Cowen lifted their price target on shares of Encompass Health from $140.00 to $150.00 and gave the company a “buy” rating in a report on Friday. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and one has assigned a Hold rating to the company’s stock. According to MarketBeat.com, Encompass Health presently has a consensus rating of “Buy” and an average target price of $154.14.

Get Our Latest Report on EHC

Encompass Health Stock Up 3.5%

The firm has a market capitalization of $13.43 billion, a price-to-earnings ratio of 21.26, a P/E/G ratio of 2.58 and a beta of 0.74. The firm has a fifty day moving average price of $122.89 and a 200 day moving average price of $109.98. The company has a current ratio of 1.09, a quick ratio of 1.19 and a debt-to-equity ratio of 0.73.

Encompass Health (NYSE:EHC – Get Free Report) last released its quarterly earnings results on Wednesday, October 28th. The company reported $1.52 earnings per share for the quarter, beating analysts’ consensus estimates of $1.36 by $0.16. Encompass Health had a return on equity of 18.35% and a net margin of 10.17%. The firm had revenue of $1.61 billion during the quarter, compared to analysts’ expectations of $1.60 billion. During the same period last year, the firm posted $1.23 EPS. The business’s revenue was up 8.9% on a year-over-year basis. Sell-side analysts anticipate that Encompass Health Corporation will post 6.29 EPS for the current fiscal year.

Encompass Health Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, January 15th. Stockholders of record on Monday, January 4th will be paid a $0.21 dividend. The ex-dividend date is Monday, January 4th. This represents a $0.84 dividend on an annualized basis and a dividend yield of 0.6%. Encompass Health’s dividend payout ratio (DPR) is 13.12%.

Insider Transactions at Encompass Health

In related news, EVP John Darby sold 8,906 shares of the company’s stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $125.95, for a total transaction of $1,121,710.70. Following the transaction, the executive vice president owned 75,041 shares in the company, valued at $9,451,413.95. This represents a 10.61% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Mark Tarr sold 173,148 shares of the stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $125.47, for a total transaction of $21,724,879.56. Following the sale, the chief executive officer directly owned 267,814 shares in the company, valued at approximately $33,602,622.58. This represents a 39.27% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 186,912 shares of company stock valued at $23,434,845 over the last ninety days. 1.80% of the stock is currently owned by company insiders.

Institutional Trading of Encompass Health

Hedge funds have recently modified their holdings of the stock. Covestor Ltd raised its position in Encompass Health by 38.1% in the 3rd quarter. Covestor Ltd now owns 660 shares of the company’s stock worth $80,000 after purchasing an additional 182 shares during the last quarter. Vise Technologies Inc. boosted its position in Encompass Health by 17.1% in the 3rd quarter. Vise Technologies Inc. now owns 6,524 shares of the company’s stock valued at $793,000 after buying an additional 951 shares during the last quarter. State of Wyoming boosted its position in Encompass Health by 262.1% in the 3rd quarter. State of Wyoming now owns 2,506 shares of the company’s stock valued at $304,000 after buying an additional 1,814 shares during the last quarter. Choreo LLC acquired a new stake in shares of Encompass Health in the 3rd quarter valued at $230,000. Finally, Childress Capital Advisors LLC increased its stake in shares of Encompass Health by 5.1% in the 3rd quarter. Childress Capital Advisors LLC now owns 2,189 shares of the company’s stock valued at $266,000 after buying an additional 106 shares during the period. 97.25% of the stock is owned by institutional investors.

Encompass Health Company Profile

(Get Free Report)

Encompass Health Corporation (NYSE:EHC) is a healthcare services company that operates inpatient rehabilitation hospitals in the United States and Puerto Rico. Its hospitals provide intensive rehabilitation to patients recovering from conditions such as stroke, brain and spinal cord injuries, neurological disorders, amputations, hip fractures and other serious illnesses or injuries.

The company’s services typically include nursing care, physical therapy, occupational therapy, speech and language therapy, respiratory therapy and medical management.