BIRMINGHAM, AL - In a recent transaction, Greg D. Carmichael, a director at Encompass Health Corp (NYSE:EHC), purchased shares of the company's common stock, signaling a vote of confidence in the hospital services provider's prospects. On May 3, 2024, Carmichael acquired 2,000 shares at a price of $83.73 per share, amounting to a total investment of $167,460.
This purchase has increased Carmichael's direct ownership in the company to a total of 17,050 shares. The transaction was disclosed in a filing with the Securities and Exchange Commission and comes at a time when investors pay close attention to insider activities for indications of a company's performance and valuation.
Encompass Health Corp, formerly known as HealthSouth Corp , operates in the hospital sector and provides a range of services through its facilities. The company's shares are publicly traded on the New York Stock Exchange under the ticker symbol EHC.
The acquisition by Carmichael may be interpreted by the market as a positive sign, as insiders often buy shares based on their belief in the company's future success and potential for growth. However, it is important for investors to consider a variety of factors when assessing the implications of insider transactions.
The details of the transaction, including the number of shares purchased and the price paid, are publicly available through the SEC's filing system. Encompass Health Corp and its representatives have not issued any additional comments regarding the purchase at this time.
InvestingPro Insights
As Encompass Health Corp (NYSE:EHC) garners attention with insider buying activity, key metrics and analyst insights from InvestingPro shed light on the company's financial standing and market performance. According to InvestingPro, Encompass Health Corp is trading at a low P/E ratio relative to near-term earnings growth, with a current P/E ratio of 22.84 and an adjusted P/E ratio for the last twelve months as of Q1 2024 of 22.37.
InvestingPro Data highlights that the company has experienced a revenue growth of 11.4% in the last twelve months as of Q1 2024, with a gross profit margin of 41.38%. Additionally, Encompass Health Corp's stock has shown a strong return over the last three months, with a price total return of 16.37%, and an impressive six-month price total return of 31.79%.
InvestingPro Tips indicate that analysts are optimistic about the company's profitability, predicting that Encompass Health will be profitable this year and noting that it has been profitable over the last twelve months. Moreover, the stock generally trades with low price volatility, which may appeal to investors seeking stable returns.
For investors seeking further insights and tips on Encompass Health Corp, InvestingPro offers additional metrics and analysis. There are currently 8 more InvestingPro Tips available to help investors make informed decisions. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription and unlock the full potential of InvestingPro's comprehensive investment tools.
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