Enhabit to nominate Stephan Rodgers for board election

DALLAS - Enhabit, Inc. (NYSE: EHAB), a prominent home health and hospice provider with a market capitalization of $437 million, announced today its intention to nominate Stephan Rodgers for election as a director at its annual meeting of stockholders in 2025. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics. Rodgers, with a 25-year track record in executive roles across the health industry, is expected to bring extensive experience to the company’s board.

Jeff Bolton, Chairman of Enhabit’s Board, expressed confidence in Rodgers’ qualifications, citing his deep industry knowledge and history of building companies. Rodgers’ prior roles include over ten years as CEO of AccentCare, Inc. and leadership positions at UnitedHealth Group (NYSE:UNH), including a three-year stint as CEO of OptumHealth Collaborative Care.

Rodgers’ appointment is anticipated to occur after his non-compete obligations with AccentCare conclude on June 30, 2025. The exact date for Enhabit’s stockholder meeting has not been announced, but Rodgers’ election would take place at this event. The timing of this announcement comes as InvestingPro data shows analysts expect net income growth this year, despite recent challenges. The company is set to report its next earnings on March 5, 2025.

In response to the nomination, Rodgers expressed enthusiasm about joining Enhabit’s board and contributing to the growth of the home health and hospice sector.

Enhabit operates nationwide, with a presence in 34 states through 256 home health locations and 112 hospice locations, generating annual revenues of over $1 billion. The company emphasizes innovative patient care in the comfort of patients’ homes, supported by advanced technology and dedicated clinical teams. For deeper insights into Enhabit’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 US stocks.

This announcement is based on a press release statement from Enhabit, Inc.

In other recent news, Enhabit Home Health & Hospice has received an upgrade from Jefferies, shifting its stock rating from Hold to Buy. This change follows the announcement of a new contract with UnitedHealthcare, set to begin on January 1, 2025, focusing on Medicare Advantage lives. Although the contract rates are below Enhabit’s existing payor innovation contracts, the agreement is expected to positively influence Enhabit’s EBITDA by approximately $5 million or more in 2025. The contract addresses previous concerns about the utilization of Enhabit’s nursing capacity, allowing management to focus on growth opportunities. Jefferies also raised Enhabit’s price target to $9.50 from $8.25, reflecting a positive outlook on the company’s financial stability and growth potential. This development is seen as a strategic move to stabilize Enhabit’s earnings and reduce execution risks. The agreement with UnitedHealthcare is considered a significant step in enhancing the company’s financial outlook and providing a stable platform for future expansion.

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