Encompass Health Corp's (NYSE:EHC) Chief Medical Officer, Elissa Joy Charbonneau, sold 10,000 shares of company stock on May 24, 2024, for a total value of $850,200. The transactions were executed at a weighted average price of $85.02 per share, with individual sales prices ranging from $84.96 to $85.30.
This sale by Charbonneau comes as part of her transactions in Encompass Health shares, where after the sale, she still retains 18,594.061 shares of the company's common stock directly. The details of the sale, including the price range of the shares sold, were disclosed in a regulatory filing with the Securities and Exchange Commission.
Investors often monitor insider transactions as they provide insights into executives' perspectives on the value of the company stock they manage. The sale represents a significant transaction by a key executive at Encompass Health, a company specializing in hospital services and maintaining a strong presence in the healthcare sector.
Encompass Health, formerly known as HealthSouth Corp , is incorporated in Delaware and has its business address in Birmingham, Alabama. The company's shares are publicly traded and are of interest to investors tracking insider activity and company performance.
The filing was signed by Patrick Darby, attorney-in-fact for Ms. Charbonneau, indicating that the transactions were carried out through a legal proxy. The details provided in the filing are part of the standard disclosure process for insider transactions and are available for public record.
InvestingPro Insights
Amidst the insider trading activity at Encompass Health Corp (NYSE:EHC), investors are keen to understand the company's current financial standing and future prospects. According to InvestingPro data, Encompass Health boasts a market capitalization of $8.54 billion, reflecting its substantial size within the healthcare sector. The company's P/E ratio stands at 22.58, which, when adjusted for the last twelve months as of Q1 2024, shows a slight decrease to 22.09. This indicates a stable valuation relative to earnings.
Encompass Health's revenue growth is also notable, with an 11.4% increase over the last twelve months as of Q1 2024. This is complemented by a solid gross profit margin of 41.38%, showcasing the company's efficiency in managing its cost of goods sold relative to its sales. Additionally, the stock has experienced a large price uptick of 28.27% over the last six months, which may interest investors looking for positive momentum.
Considering these metrics, it is worth noting that Encompass Health is trading at a low P/E ratio relative to its near-term earnings growth, as per one of the InvestingPro Tips. This could suggest that the stock is undervalued, presenting a potential opportunity for investors. Moreover, the stock generally trades with low price volatility, which may appeal to those looking for stable investment options in the healthcare industry. For investors seeking more in-depth analysis and additional InvestingPro Tips, there are 7 more tips available at Investing.com. Interested readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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