Encompass Health Stock Discussion

Insiders selling shares below the current price could indicate their belief in the fairness of the lower price and skepticism about the higher valuation. However, the reasons for selling are varied and unknown. The level of insider ownership suggests some alignment with other shareholders.

Despite solid earnings growth, the company's high P/E ratio is concerning given its lower forecast growth. Investors remain bullish, but the earnings growth may not sustain the share price. The high P/E ratio may not support the positive sentiment for long.

Encompass Health may be undervalued according to metrics, hinting a buying opportunity. The company's positive growth outlook isn't fully incorporated in its current share price. Considering management's track record is advised before investment.

Despite significant insider ownership possibly aligning company operations to all shareholders' interests, lack of insider buying over the past year is cautionary. Share sales at current trading prices could further induce wariness.

The company has shown similar rates of growth in EPS and share price, giving evidence that market perception of Encompass Health hasn't markedly changed. Considering the strong momentum in share price, it may be valuable to examine the stock further.