William Blair Predicts Weaker Earnings for Encompass Health

Encompass Health Co. (NYSE:EHC) – Equities researchers at William Blair lowered their Q1 2025 earnings per share (EPS) estimates for shares of Encompass Health in a report issued on Tuesday, October 29th. William Blair analyst J. Haase now expects that the company will post earnings per share of $1.29 for the quarter, down from their previous forecast of $1.32. The consensus estimate for Encompass Health’s current full-year earnings is $4.18 per share. William Blair also issued estimates for Encompass Health’s Q2 2025 earnings at $1.24 EPS and Q3 2025 earnings at $1.26 EPS.

A number of other research firms also recently weighed in on EHC. Truist Financial reissued a “buy” rating and set a $116.00 target price (up previously from $108.00) on shares of Encompass Health in a report on Wednesday. Barclays lifted their target price on Encompass Health from $109.00 to $116.00 and gave the stock an “overweight” rating in a report on Tuesday. Stephens restated an “overweight” rating and issued a $105.00 price target on shares of Encompass Health in a research report on Tuesday, August 6th. UBS Group raised their price target on Encompass Health from $100.00 to $110.00 and gave the stock a “buy” rating in a research report on Wednesday, September 25th. Finally, Leerink Partners began coverage on Encompass Health in a research report on Wednesday, July 10th. They issued an “outperform” rating and a $100.00 price target on the stock. Nine equities research analysts have rated the stock with a buy rating and two have given a strong buy rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Buy” and a consensus target price of $107.11.

Encompass Health Stock Up 1.3 %

EHC opened at $101.35 on Thursday. Encompass Health has a fifty-two week low of $61.08 and a fifty-two week high of $102.36. The company has a debt-to-equity ratio of 1.08, a quick ratio of 1.35 and a current ratio of 1.35. The company has a market capitalization of $10.20 billion, a P/E ratio of 24.48, a P/E/G ratio of 1.45 and a beta of 0.88. The stock has a fifty day moving average of $94.14 and a 200-day moving average of $88.61.

Encompass Health (NYSE:EHC) last posted its earnings results on Monday, October 28th. The company reported $1.03 earnings per share for the quarter, topping analysts’ consensus estimates of $0.94 by $0.09. Encompass Health had a return on equity of 17.83% and a net margin of 7.88%. The company had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.33 billion. During the same quarter last year, the firm earned $0.86 earnings per share. The company’s revenue was up 11.9% on a year-over-year basis.

Institutional Trading of Encompass Health

Several hedge funds and other institutional investors have recently made changes to their positions in EHC. Magnetar Financial LLC grew its holdings in shares of Encompass Health by 1,176.6% during the second quarter. Magnetar Financial LLC now owns 744,836 shares of the company’s stock worth $63,899,000 after purchasing an additional 814,018 shares during the last quarter. Thrivent Financial for Lutherans grew its holdings in shares of Encompass Health by 2,302.7% during the second quarter. Thrivent Financial for Lutherans now owns 603,558 shares of the company’s stock worth $51,780,000 after purchasing an additional 578,438 shares during the last quarter. Price T Rowe Associates Inc. MD grew its holdings in shares of Encompass Health by 614.8% during the first quarter. Price T Rowe Associates Inc. MD now owns 540,519 shares of the company’s stock worth $44,637,000 after purchasing an additional 464,897 shares during the last quarter. Scout Investments Inc. bought a new stake in shares of Encompass Health during the first quarter worth about $29,356,000. Finally, TD Asset Management Inc grew its holdings in shares of Encompass Health by 16.0% during the first quarter. TD Asset Management Inc now owns 2,283,674 shares of the company’s stock worth $188,586,000 after purchasing an additional 314,488 shares during the last quarter. 97.25% of the stock is currently owned by institutional investors.

Insider Buying and Selling at Encompass Health

In other Encompass Health news, CFO Douglas E. Coltharp sold 12,260 shares of Encompass Health stock in a transaction dated Tuesday, August 13th. The stock was sold at an average price of $86.34, for a total value of $1,058,528.40. Following the transaction, the chief financial officer now owns 136,227 shares in the company, valued at $11,761,839.18. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Company insiders own 2.10% of the company’s stock.

Encompass Health Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, January 15th. Shareholders of record on Thursday, January 2nd will be given a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a yield of 0.67%. The ex-dividend date is Thursday, January 2nd. Encompass Health’s dividend payout ratio is presently 16.43%.

Encompass Health announced that its board has authorized a stock buyback program on Wednesday, July 24th that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the company to repurchase up to 5.4% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s management believes its stock is undervalued.

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.