Jeffrey Bolton, a director at Enhabit, Inc. (NYSE:EHAB), recently acquired a significant amount of the company's common stock. According to the latest SEC filing, Bolton purchased a total of 10,000 shares over several transactions. These purchases took place on November 8 and November 12, 2024, with prices ranging from $7.60 to $7.77 per share, amounting to a total investment of $77,177. Following these transactions, Bolton's total direct ownership in Enhabit increased to 94,144 shares.
In other recent news, Enhabit reported mixed Q3 results amid strategic changes. The company's earnings call revealed a rise in its hospice segment revenue and patient census, while the home health segment witnessed a decrease in revenue due to a decline in recertifications. These developments are part of the company's recent strategic initiatives which include branch consolidation and expansion, improved leverage ratio, and debt reduction through strong cash flow.
Enhabit is also actively negotiating with UnitedHealthcare to mitigate lost census volume. The impacts of hurricanes Helene and Milton affected operations but branches have now resumed service. The company also welcomed Ryan Solomon as the new CFO.
The revised full-year guidance for net service revenue is projected to be between $1.031 billion and $1.046 billion. Adjusted EBITDA is expected to be between $98 million and $102 million. For 2025, Enhabit anticipates mid- to high-single-digit revenue growth in hospice and low- to mid-single-digit growth in home health. Significant cost-saving initiatives, including labor cost management, are also planned.
InvestingPro Insights
Jeffrey Bolton's recent acquisition of Enhabit, Inc. (NYSE:EHAB) shares aligns with several promising indicators highlighted by InvestingPro. Despite the company's current unprofitability over the last twelve months, InvestingPro Tips suggest that net income is expected to grow this year, and analysts predict the company will turn profitable. This optimistic outlook may have influenced Bolton's decision to increase his stake in the company.
The director's purchase at prices between $7.60 and $7.77 per share appears strategic when considering Enhabit's valuation metrics. InvestingPro data shows that the company's Price to Book ratio stands at a modest 0.68, indicating that the stock may be undervalued relative to its book value. Additionally, an InvestingPro Tip points out that Enhabit's valuation implies a strong free cash flow yield, which could be attractive to value-oriented investors like Bolton.
It's worth noting that while Enhabit does not pay a dividend to shareholders, the company boasts a high shareholder yield according to InvestingPro Tips. This suggests that the company may be creating value for shareholders through other means, such as share repurchases or debt reduction.
For investors seeking a more comprehensive analysis, InvestingPro offers 6 additional tips for Enhabit, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.