Stuart McGuigan, a director at Enhabit, Inc. (NYSE:EHAB), recently acquired 15,000 shares of the company's common stock. The transaction, which took place on December 10, 2024, was executed at a price of $8.81 per share, amounting to a total investment of $132,150. The purchase price sits between the stock's 52-week range of $6.85 to $11.74, with the company currently valued at approximately $432 million. Following this purchase, McGuigan's direct ownership in Enhabit stands at 46,810 shares. This move reflects McGuigan's increased stake in the Dallas-based home health care services provider. According to InvestingPro analysis, while Enhabit isn't currently profitable, analysts expect positive earnings this year. The company maintains a "GOOD" Financial Health score and shows a strong free cash flow yield, with detailed insights available in the Pro Research Report covering this healthcare provider.
In other recent news, Enhabit Home Health & Hospice witnessed several noteworthy developments. The company received an upgrade from Jefferies, moving from Hold to Buy, due to its new contract with UnitedHealthcare for providing home health services. This agreement is expected to positively impact Enhabit's EBITDA, potentially increasing it by approximately $5 million or more in 2025.
The contract also addresses concerns about Enhabit's nursing capacity utilization, allowing the company to focus on growth opportunities. In its third quarter, Enhabit reported growth in its hospice segment and challenges in the home health segment. Consolidated net revenue decreased slightly, while adjusted EBITDA saw an increase.
Furthermore, Enhabit announced strategic initiatives, including branch consolidations and expansions. The company's leverage ratio improved, and a strong cash flow supported a reduction in debt. Despite a decrease in home health revenue, non-Medicare admissions in this segment surged by 20.1%. Lastly, the company hired Ryan Solomon as the new CFO, strengthening its management team.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.