COLTHARP DOUGLAS E 4

What Happened

• Douglas E. Coltharp, Chief Financial Officer of Encompass Health Corporation (EHC), exercised 27,694 stock options and immediately sold essentially the same number of shares on 2026-05-15. The exercise cost was $32.94 per share (27,694 shares × $32.94 = $912,240). The sales were reported as 27,693 shares sold at a weighted-average price of $106.83 (proceeds $2,958,443) and 1 share sold at $107.28 (proceeds $107), for total gross sale proceeds of $2,958,550. Net proceeds after the exercise cost were approximately $2,046,310. A related derivative line is also reported (27,694 shares at $0.00), reflecting the option exercise/settlement.

Key Details

• Transaction date: 2026-05-15; Form 4 filed: 2026-05-18 (timely filing).
• Exercise: 27,694 options exercised at $32.94 each (total cost $912,240).
• Sales: 27,693 shares sold at weighted avg $106.83 (range $106.28–$107.22 per footnote), plus 1 share at $107.28; gross proceeds ~$2.96M.
• Net proceeds (gross sales less exercise cost): ≈ $2.05M.
• Shares owned after transaction: not specified in the provided filing data.
• Footnotes: F1 — sale price is a weighted average (sales ranged $106.28–$107.22); F2 — option counts/prices were adjusted for the Enhabit, Inc. spin-off.
• Transaction codes: M = option exercise; S = sale. This pattern indicates an exercise followed by an immediate sale (a cashless or simultaneous disposition).

Context

• This is an exercise-plus-sale (option exercise with immediate sale), a common way executives realize gains and cover exercise costs or taxes. Such transactions are routine and do not necessarily indicate a change in insider sentiment.
• The filing does not indicate a 10% owner status or a 10b5‑1 trading plan in the provided data.