Encompass Health CEO Mark Tarr Engages in Routine Insider Sales to Cover Tax Liabilities – No Market Shock Expected

Insider Selling Spree at Encompass Health – What It Means for Investors

On February 23, 2026 the company’s President and CEO, Mark Tarr, sold 2,488 shares of Encompass Health common stock at $106.15 a share, the same price that was trading on the NYSE that day. The sale was executed to satisfy tax withholding obligations related to vested restricted stock, a common mechanism for executives to cover taxes without tapping into the company’s cash reserves. While the transaction size is modest relative to the company’s $10.68 billion market cap, it fits a pattern of frequent, relatively small sales that have dominated Tarr’s recent trading activity.

Patterns in Tarr’s Trading – A Snapshot Tarr’s insider history over the last two weeks shows a flurry of buying and selling. He purchased 100,946 shares on February 18 and 12,796 shares on February 19, raising his stake to just over 490,000 shares. He then sold a combined 43,378 shares on February 19 and 1,797 shares on February 20, bringing his holdings down to 443,149. This alternating buy‑sell cycle is typical for CEOs who hold restricted stock units that vest in stages; the sales often coincide with vesting dates to meet tax liabilities. The volume of shares traded is small relative to the company’s total shares outstanding (~170 million), but the consistent timing suggests a routine rather than a signal of impending corporate change.

Company‑wide Insider Activity – A Quiet Consensus Beyond Tarr, the latest filing shows a handful of other executives (Fay Edmund, Tuer William, Douglas Coltharp, Andrew Price, Elissa Charbonneau, and John Darby) each selling between 400 and 16,000 shares. Their transactions cluster around the same date, indicating a broader “liquidity event” rather than isolated strategic divestitures. The cumulative volume of all insider sales on February 23 amounts to roughly 25,000 shares, which represents less than 0.02 % of the total shares outstanding. For a company of this size, such volume is unlikely to move the market, but it does provide a window into how executives manage personal wealth and tax obligations.

Investor Takeaways – What to Watch

1. Signal vs. Noise – The routine nature of Tarr’s sales, coupled with the lack of any accompanying corporate announcement, suggests a neutral signal. Investors should interpret the transaction as part of the standard tax‑covering practice rather than a red flag.

2. Liquidity Management – The concurrent selling by several senior executives points to a collective need for cash or tax coverage. While this does not affect the company’s financial position, it may indicate a short‑term liquidity requirement on the personal side of these executives.

3. Valuation Context – Encompass Health’s share price is comfortably below its 52‑week high and above its 52‑week low, trading at a P/E of 19.1 and a P/B of 4.4. The recent dividend declaration underscores the company’s commitment to returning capital, which can be a positive tailwind for long‑term shareholders.

4. Future Outlook – With the company operating in a mature health‑care segment, growth is typically incremental. Insider activity alone is unlikely to materially alter that trajectory. Investors should focus on quarterly earnings, reimbursement trends, and any expansion initiatives that could affect future cash flows.

Tarr Mark J. – A Profile Based on Insider Activity Mark Tarr has been at Encompass Health for several years, steering the organization through a period of steady revenue growth and expanding service lines. His insider trading pattern reflects a balanced approach: he acquires shares during periods of market strength and sells around vesting dates to cover taxes. The absence of large block trades or abrupt changes in his holdings indicates confidence in the company’s long‑term prospects. For shareholders, Tarr’s consistent, small‑scale transactions suggest a prudent management of personal wealth while maintaining a stable ownership stake in the company.