Encompass Health climbs after Q3 results top expectations and guidance is raised

Encompass Health Corporation (EHC) is up 7.2% today. Here is some analysis on what might have caused this price movement.

Analysis: The move appears tied to a strong third-quarter earnings report and a higher full-year outlook. Investors likely responded to faster profit growth, solid patient volume trends, and signs that demand for inpatient rehabilitation services remains healthy.

Details:

Third-quarter net operating revenue rose 8.9% year over year to $1.61 billion, while adjusted EBITDA increased 15.5% to $346.6 million.

Adjusted earnings per share came in at $1.52, above the prior-year level of $1.23 and above Wall Street expectations.

Management lifted full-year 2026 guidance, including adjusted earnings per share to a range of $6.23 to $6.37, up from prior guidance of $6.02 to $6.25.

Operating trends were also supportive, with discharges up 5.7%, same-store discharge growth of 3.0%, and net patient revenue per discharge up 4.0%.

Sources:

Encompass Health, SEC, Investing.com

Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

$EHC Insider Trading Activity

$EHC insiders have traded $EHC stock on the open market 8 times in the past 6 months. Of those trades, 0 have been purchases and 8 have been sales.

Here’s a breakdown of recent trading of $EHC stock by insiders over the last 6 months:

MARK J TARR (President & CEO) has made 0 purchases and 2 sales selling 173,148 shares for an estimated $21,724,095.
DOUGLAS E COLTHARP (EVP & Chief Financial Officer) has made 0 purchases and 3 sales selling 46,563 shares for an estimated $5,324,345.
JOHN PATRICK DARBY (EVP, Gen Counsel & Secretary) has made 0 purchases and 2 sales selling 13,764 shares for an estimated $1,709,965.
ANDREW L PRICE (Chief Accounting Officer) sold 5,211 shares for an estimated $630,166

To track insider transactions, check out Quiver Quantitative's insider trading dashboard. You can access data on insider stock transactions through the Quiver Quantitative API insider transaction endpoint.

$EHC Hedge Fund Activity

We have seen 284 institutional investors add shares of $EHC stock to their portfolio, and 260 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

INVESCO LTD. removed 2,224,997 shares (-65.7%) from their portfolio in Q2 2026, for an estimated $224,902,696
T. ROWE PRICE INVESTMENT MANAGEMENT, INC. removed 1,720,246 shares (-94.9%) from their portfolio in Q2 2026, for an estimated $173,882,465
JPMORGAN CHASE & CO added 1,133,561 shares (+inf%) to their portfolio in Q2 2026, for an estimated $114,580,345
EVERSEPT PARTNERS, LP added 832,815 shares (+429.1%) to their portfolio in Q2 2026, for an estimated $84,180,940
HOLOCENE ADVISORS, LP added 827,311 shares (+550.4%) to their portfolio in Q2 2026, for an estimated $83,624,595
SIXTH STREET PARTNERS MANAGEMENT COMPANY, L.P. added 688,264 shares (+inf%) to their portfolio in Q2 2026, for an estimated $69,569,725
JANE STREET GROUP, LLC added 578,336 shares (+13576.0%) to their portfolio in Q2 2026, for an estimated $58,458,202

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Quiver Quantitative API 13F endpoint.

$EHC Price Targets

Multiple analysts have issued price targets for $EHC recently. We have seen 2 analysts offer price targets for $EHC in the last 6 months, with a median target of $132.5.

Here are some recent targets:

Ryan Langston from TD Cowen set a target price of $125.0 on 05/28/2026
Andrew Mok from Barclays set a target price of $140.0 on 05/05/2026

This article is not financial advice. See Quiver Quantitative's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.