Encompass Health GC sells 4,858 shares at $121.09
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.
Positive
- None.
Negative
- None.
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 shares (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
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.
