Encompass Health GC sells 4,858 shares at $121.09
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
4
Rhea-AI Filing Summary
For Encompass Health Corp (EHC), EVP, General Counsel & Secretary John Patrick Darby exercised 4,858 non-qualified stock options on 2026-08-31 at an exercise price of $35.06 per share, acquiring an equal number of Encompass Health common shares, and on the same date sold 4,858 shares at $121.09 per share. The option exercise price and option share amount were adjusted under the company’s 2016 Omnibus Performance Incentive Plan to reflect the spin-off distribution of Enhabit, Inc. The filing’s Rule 10b5-1 checkbox was not marked as being pursuant to a trading plan.
Insider Trade Summary
Exercise and Sale: 4,858 shares ($418K approx. pre-tax spread)
Exercise and Sale
3 txns
Insider
Darby John Patrick
Role
EVP, Gen Counsel & Secretary
Sold
4,858 shs ($588K)
Approx. gross sale proceeds
$588K
Approx. exercise cost
$170K
Approx. pre-tax spread
$418K
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Non-qualified Stock Option (Right to Buy) F1 | 4,858 | $0.00 | $0.00 |
| Exercise | Encompass Health Common Stock | 4,858 | $35.06 | $170K |
| Sale | Encompass Health Common Stock | 4,858 | $121.09 | $588K |
Holdings After Transaction:
Non-qualified Stock Option (Right to Buy) — 0 contracts (Direct);
Encompass Health Common Stock — 75,041 shares (Direct)
Footnotes (1)
- F1. The exercise price and number of options reported have been adjusted, pursuant to Article 17 of the 2016 Omnibus Performance Incentive Plan, for the spin-off distribution of the common stock of Enhabit, Inc
Key Figures
Options exercised: 4,858 shares
Option exercise price: $35.06 per share
Shares acquired via exercise: 4,858 shares
+4 more
7 metrics
Options exercised
4,858 shares
Non-qualified stock options exercised on 2026-08-31
Option exercise price
$35.06 per share
Exercise price for 4,858 non-qualified stock options
Shares acquired via exercise
4,858 shares
Encompass Health common stock received upon option exercise
Shares sold
4,858 shares
Encompass Health common stock sold on 2026-08-31
Sale price
$121.09 per share
Price per share for the 4,858 Encompass Health shares sold
Option expiration date
2027-02-24
Expiration date of the exercised non-qualified stock option
Option exercise date (grant context)
2018-02-24
Exercise eligibility date associated with the option series
Key Terms
Non-qualified Stock Option, Rule 10b5-1, spin-off distribution, 2016 Omnibus Performance Incentive Plan, +1 more
5 terms
Non-qualified Stock Option financial
"security_title: "Non-qualified Stock Option (Right to Buy)""
A non-qualified stock option (NSO) is a contract that lets an employee or service provider buy company shares at a fixed price for a set period, like a voucher to purchase stock later at today’s price. It matters to investors because exercising NSOs creates ordinary income for the holder and can increase share count, affecting a company’s earnings and ownership mix; think of it as a future sale that can dilute existing shareholders and has immediate tax consequences for the recipient.
Rule 10b5-1 regulatory
"The filing’s Rule 10b5-1 checkbox was not marked"
Rule 10b5-1 is a regulation that allows company insiders to buy or sell their shares at predetermined times, even if they have access to non-public information. It acts like setting a schedule in advance for transactions, helping prevent accusations of unfair trading. This rule provides a way for insiders to plan trades transparently, giving investors confidence that these transactions are not based on hidden information.
spin-off distribution financial
"adjusted ... for the spin-off distribution of the common stock of Enhabit"
2016 Omnibus Performance Incentive Plan financial
"adjusted, pursuant to Article 17 of the 2016 Omnibus Performance Incentive Plan"
derivative security financial
"transaction_code_description: "Exercise or conversion of derivative security""
A derivative security is a financial contract whose value comes from the price or performance of something else, such as a stock, bond, commodity, or market index. For investors it acts like an insurance policy or a wager: it can be used to protect against losses, lock in prices, or amplify gains and losses, so it can change a portfolio’s risk and potential return without owning the underlying asset directly.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What insider transaction did Encompass Health (EHC) report for John Patrick Darby?
John Patrick Darby exercised 4,858 stock options at an exercise price of $35.06 per share, acquiring 4,858 Encompass Health common shares, and then sold 4,858 shares on 2026-08-31 at a sale price of $121.09 per share.
What type of derivative security did John Patrick Darby exercise at EHC?
He exercised a non-qualified stock option for 4,858 shares of Encompass Health common stock at an exercise price of $35.06 per share, with the option originally granted under the 2016 Omnibus Performance Incentive Plan.
Were the Encompass Health (EHC) insider transactions under a Rule 10b5-1 plan?
No. The filing’s Rule 10b5-1 checkbox is not marked as being pursuant to a trading plan, indicating these transactions were not reported as executed under a Rule 10b5-1 trading arrangement.
How were John Patrick Darby’s Encompass Health stock options adjusted for the Enhabit spin-off?
A footnote explains that the exercise price and number of options were adjusted under Article 17 of the 2016 Omnibus Performance Incentive Plan to account for the spin-off distribution of the common stock of Enhabit, Inc.
AI-generated analysis. How Rhea-AI works. Not financial advice.
