In a recent transaction, Mark J. Tarr, President and CEO of Encompass Health Corp (NYSE:EHC), sold a total of 44,976 shares of the company's common stock, netting a total of approximately $3,745,151. The shares were sold at an average price of $83.27, with individual transactions ranging from $83.25 to $83.53.
The sale was completed on April 30, 2024, as reported in a new filing with the Securities and Exchange Commission. On the same day, Tarr also acquired a significant number of shares through the exercise of options. He acquired 19,460 shares at $35.83 per share and another 25,516 shares at $29.06 per share, for a total transaction value of $1,438,746.
Following these transactions, Tarr's direct ownership in Encompass Health Corp stands at 554,098 shares. The company, based in Birmingham, Alabama, operates in the healthcare sector, focusing on hospitals and providing post-acute healthcare services.
Investors often monitor the buying and selling activities of top executives as it may provide insights into their perspective on the company's current valuation and future prospects. It's worth noting that the transactions took place according to the pre-determined guidelines and are part of the standard practices for executive compensation and portfolio management.
For additional details regarding the number of shares sold at each price point, the reporting person has agreed to provide full information upon request to Encompass Health Corporation, any of its security holders, or the staff of the SEC.
The transactions were executed under the terms of the 2016 Omnibus Performance Incentive Plan, considering adjustments made for the spin-off distribution of the common stock of Enhabit, Inc. The plan outlines the conditions under which company executives can exercise their stock options.
The filing was signed on behalf of Mark J. Tarr by attorney-in-fact Patrick Darby on May 1, 2024.
InvestingPro Insights
As Encompass Health Corp's (NYSE:EHC) President and CEO, Mark J. Tarr, engages in notable stock transactions, investors and analysts alike are keen to understand the underlying financial health and future prospects of the company. According to InvestingPro data, Encompass Health boasts a market capitalization of $8.35 billion, reflecting its significant presence in the healthcare sector.
The company's P/E ratio, a key metric for valuation, stands at 22.16, which is considered low relative to its near-term earnings growth. This could suggest that the stock is undervalued based on its earnings potential. Moreover, the P/E ratio has slightly adjusted down to 21.58 over the last twelve months as of Q1 2024, indicating a stable earnings outlook.
With a revenue growth of 11.4% over the last twelve months as of Q1 2024, Encompass Health is demonstrating its ability to expand effectively. This growth is also reflected in its quarterly figures, with a 13.41% increase in revenue in Q1 2024. The company's robust gross profit margin of 41.38% further underscores its profitability and efficient operations.
An InvestingPro Tip to consider is the company's low price volatility, which suggests that Encompass Health's stock price is relatively stable, potentially offering a less risky investment for shareholders. Additionally, the stock is trading near its 52-week high, with the price at 97.06% of this peak, which may indicate strong market confidence in the company's performance.
For investors seeking more in-depth analysis and additional InvestingPro Tips, such as the company's profitability over the last twelve months and a large price uptick over the last six months, Encompass Health's profile on InvestingPro offers a comprehensive suite of tools and insights. There are 7 additional InvestingPro Tips available, which can provide further guidance on investment decisions. To access these insights, investors are invited to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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