Enhabit (NYSE: EHAB) director’s stock converted to $13.80 cash in merger
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Enhabit, Inc. director Stuart M. McGuigan reported dispositions of common stock in connection with the company’s merger. On May 15, 2026, he disposed of 60,466 shares of Enhabit common stock and a separate block of 15,000 shares, both at $13.80 per share, as issuer dispositions.
Under the Agreement and Plan of Merger, each Enhabit common share outstanding immediately before the effective time was canceled and converted into the right to receive $13.80 in cash. Related deferred stock units were also canceled and converted into the same cash consideration, less applicable taxes and withholding.
Positive
- None.
Negative
- None.
Insights
Director’s Form 4 reflects cash-out in merger, not open-market selling.
The Form 4 shows issuer dispositions of Enhabit common stock at $13.80 per share tied directly to the merger agreement. These are mechanical cancellations and cash conversions, not discretionary market trades.
Each outstanding common share and deferred stock unit was converted into the right to receive the same $13.80 cash consideration at the merger’s effective time. The filing mainly documents how the merger consideration applied to the director’s holdings, rather than signaling a change in his independent view of the stock.
Insider Trade Summary
2 transactions reported
Mixed
2 txns
Insider
MCGUIGAN STUART M
Role
null
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Disposition | Common Stock | 15,000 | $13.80 | $207K |
| Disposition | Common Stock | 60,466 | $13.80 | $834K |
Holdings After Transaction:
Common Stock — 60,466 shares (Direct, null)
Footnotes (1)
- Pursuant to the Agreement and Plan of Merger ('Merger Agreement'), dated as of February 22, 2026, by and among Enhabit, Inc. (the 'Company'), Anchor Parent, LLC ('Parent'), and Anchor Merger Sub, Inc., a wholly owned subsidiary of Parent ('Merger Sub'), Merger Sub will be merged with and into the Company (the 'Merger'), with the Company surviving the Merger as a wholly owned subsidiary of Parent (the 'Surviving Corporation'). At the effective time of the Merger (the 'Effective Time'), each share of the Company's common stock, par value $0.01 per share, that was issued and outstanding immediately prior to the Effective Time was automatically canceled and converted into the right to receive $13.80 in cash (the 'Merger Consideration'). Represents deferred stock units ('DSUs'). Each DSU represents a contingent right to receive one share of common stock of the Company. Pursuant to the Merger Agreement, each DSU that was outstanding as of immediately prior to the Effective Time, was automatically canceled and converted into the right to receive the Merger Consideration, without interest less applicable taxes and withholding.
Key Figures
First disposition shares: 60,466 shares
Second disposition shares: 15,000 shares
Merger consideration price: $13.80 per share
+3 more
6 metrics
First disposition shares
60,466 shares
Common Stock issuer disposition on May 15, 2026
Second disposition shares
15,000 shares
Common Stock issuer disposition on May 15, 2026
Merger consideration price
$13.80 per share
Cash paid per Enhabit common share at effective time of merger
Price per share in dispositions
$13.80 per share
Reported transaction price for both issuer dispositions
Shares after one disposition line
0 shares
Total shares following the 60,466-share disposition entry
Shares after other disposition line
60,466 shares
Total shares following the 15,000-share disposition entry
Key Terms
Agreement and Plan of Merger, Merger Consideration, Effective Time, deferred stock units, +1 more
5 terms
Agreement and Plan of Merger financial
"Pursuant to the Agreement and Plan of Merger ('Merger Agreement'), dated as of February 22, 2026, by and among Enhabit, Inc."
An Agreement and Plan of Merger is a formal document where two companies agree to combine into one, outlining how the process will happen. It’s like a step-by-step plan for merging, and it matters because it shows both sides have agreed on the details before the official transition takes place.
Merger Consideration financial
"converted into the right to receive $13.80 in cash (the 'Merger Consideration')."
Merger consideration is the total payment a company or buyer offers to shareholders of a target company in exchange for combining the two businesses, and can include cash, shares in the surviving company, debt assumption, or a mix of these. Investors care because the form and amount affect the deal’s value, tax consequences, immediate cash received versus future ownership, and the risk and upside of holding new shares — similar to choosing between cash now or stock that could grow later.
Effective Time financial
"At the effective time of the Merger (the 'Effective Time'), each share of the Company's common stock"
deferred stock units financial
"Represents deferred stock units ('DSUs'). Each DSU represents a contingent right to receive one share of common stock"
Deferred stock units are promises from a company to give an employee shares of stock at a future date, often after certain conditions are met or after leaving the company. They function like a form of delayed compensation, allowing employees to earn shares over time. For investors, they represent potential future ownership in the company, but do not provide immediate voting rights or dividends until the shares are actually received.
disposition to issuer financial
"transaction_code_description": "Disposition to issuer""
FAQ
What insider transaction did Enhabit (EHAB) director Stuart M. McGuigan report?
Stuart M. McGuigan reported issuer dispositions of Enhabit common stock. He disposed of 60,466 shares and a separate block of 15,000 shares at $13.80 per share, reflecting cancellation and cash conversion under the company’s merger agreement.
Does the Enhabit (EHAB) Form 4 show open-market buying or selling?
The Form 4 does not show open-market trades. It reports disposition-to-issuer transactions where shares were canceled and converted into cash at $13.80 per share in connection with the merger, rather than discretionary market purchases or sales.
How did the Enhabit (EHAB) merger affect deferred stock units (DSUs)?
Each DSU, representing a right to one Enhabit common share, was automatically canceled at the effective time. Every DSU converted into the right to receive the $13.80 Merger Consideration in cash, less applicable taxes and withholding obligations.
What is the Agreement and Plan of Merger mentioned for Enhabit (EHAB)?
The Agreement and Plan of Merger is the contract under which Anchor Merger Sub, Inc. merged with Enhabit. At the merger’s effective time, each outstanding Enhabit common share was canceled and converted into the right to receive $13.80 in cash.