Rajeev Singh, the Chief Executive Officer of Accolade, Inc. (NASDAQ:ACCD), recently sold shares of the company's stock valued at approximately $2,564. According to a filing with the Securities and Exchange Commission, Singh disposed of 680 shares on October 11, 2024, at an average price of $3.771 per share.
The transaction was conducted to cover tax withholding obligations related to the vesting of restricted stock units (RSUs), as noted in the filing. Singh's sale was part of a "mandatory sell to cover" transaction and was not a discretionary sale. Following the transaction, Singh holds 791,785 shares directly. Additionally, he retains indirect ownership of 651,619 shares through Avanti Holdings, LLC, where he has voting and investment power.
Earlier, on October 10, Singh acquired 1,650 shares of common stock through the conversion of RSUs, which did not involve any cash transaction. This conversion increased his direct ownership to 792,465 shares before the subsequent sale.
In other recent news, Accolade Inc. has been in the spotlight with several analyst firms adjusting their outlook on the company. Wells Fargo revised the price target for Accolade to $6.00, citing concerns over delayed deal closures that could affect the company's growth. Despite these challenges, the firm suggested that Accolade's revenue targets are still attainable with moderate growth in Annual Contract Value (ACV).
Accolade recently reported robust second-quarter results for 2025, surpassing revenue expectations with a total of $106.4 million. The healthcare solutions provider also confirmed its fiscal year 2025 revenue guidance between $460 million to $475 million.
Several firms including Stephens, Canaccord Genuity, Truist Securities, and BofA Securities revised their price targets for Accolade, maintaining Buy ratings. Notably, Stephens adjusted its model to reflect a 12% revenue growth for Accolade in fiscal years 2025 and 2026.
Canaccord Genuity expressed confidence in Accolade's ability to meet performance guarantees and secure new business, despite the company's third-quarter guidance falling below estimates. However, slower revenue growth is anticipated in fiscal year 2026 due to staggered launches.
Accolade's management has expressed optimism about a strong pipeline with diversification across employers, health plans, and government segments. The company's competitive edge in the expert medical opinion (EMO) product market and its successful management of marketing expenses have been notable developments.
InvestingPro Insights
Accolade's recent stock performance and financial metrics provide additional context to CEO Rajeev Singh's recent stock transactions. According to InvestingPro data, Accolade's stock has experienced significant volatility, with a 9.16% decline in the past week and a substantial 57.23% drop over the last six months. This downward trend aligns with an InvestingPro Tip indicating that the stock has taken a big hit over the last six months.
Despite these challenges, Accolade's revenue growth remains positive, with a 16.04% increase in the last twelve months as of Q1 2023. However, the company is not currently profitable, as highlighted by another InvestingPro Tip. This financial situation may explain the recent analyst actions, with six analysts revising their earnings expectations downwards for the upcoming period.
It's worth noting that Accolade operates with a moderate level of debt and maintains liquid assets that exceed short-term obligations, which could provide some financial stability during this volatile period. For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Accolade, providing a deeper understanding of the company's financial health and market position.
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