What happens to stocks if AI loses momentum?
In a recent transaction, Patrick Darby, Executive Vice President, General Counsel & Secretary of Encompass Health Corp (NYSE:EHC), sold 10,000 shares of the company’s common stock. The shares were sold at a weighted average price of approximately $114.79, generating a total of $1,147,900. This sale was part of a series of transactions reported for April 29, 2025.
On the same day, Darby also exercised options to acquire 10,000 shares at a price of $35.06 per share, resulting in a total exercise value of $350,600. Following these transactions, Darby holds 79,710 shares directly. The stock has shown remarkable momentum, posting a 15% return in the past week alone. According to InvestingPro, the RSI suggests the stock is in overbought territory, while seven analysts have recently revised their earnings expectations upward.
The stock sale and option exercise were disclosed in a Form 4 filing with the Securities and Exchange Commission, providing insights into insider activities at Encompass Health. For deeper analysis and additional insights, investors can access the comprehensive Pro Research Report available exclusively on InvestingPro, which covers this and over 1,400 other US stocks with expert analysis and actionable intelligence.
In other recent news, Encompass Health Corp has reported impressive financial results for the first quarter of 2025, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $1.37, exceeding the forecasted $1.20, and reported revenue of $1.46 billion, which was above the anticipated $1.43 billion. This strong performance led to an increase in full-year guidance, with projected net operating revenue between $5.85 billion and $5.925 billion and adjusted EPS between $4.85 and $5.10. Following these results, Mizuho (NYSE:MFG) Securities raised the price target for Encompass Health to $130, maintaining an Outperform rating, citing robust patient volumes and effective expense management. Similarly, RBC Capital Markets increased their price target to $125, also upholding an Outperform rating, highlighting the company’s favorable shift in payer mix. Encompass Health’s recent performance has been bolstered by strategic expansions, including new hospitals and bed additions, contributing to a 10.6% year-over-year revenue increase. The company’s adjusted EBITDA rose by 14.9% to $313.6 million, and adjusted free cash flow increased by 32.7% to $222.4 million. These developments indicate a strong start to 2025 for Encompass Health, with analysts expressing confidence in the company’s ongoing growth trajectory.
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