American Well Corp's (NYSE:AMWL) Chief Accounting Officer, Paul Francis McNeice, has recently sold shares of the company's stock, according to the latest SEC filing. On October 1, McNeice disposed of 84 shares at a price of $9.1543 per share, totaling approximately $768. The transaction was conducted to cover the tax liability associated with the vesting of restricted stock units.
The sale was part of an automatic "sell to cover" transaction, which is a common method for executives to satisfy tax obligations that arise from the vesting of equity awards. It is important to note that such sales are typically planned in advance and do not necessarily reflect discretionary trading activity by the executive.
Following this transaction, McNeice's ownership in American Well Corp stands at 9,423 shares. The company, which specializes in business services within the healthcare sector, is incorporated in Delaware and has its business address in Boston, MA.
Investors often monitor insider transactions as they can provide insights into an executive's view of the company's stock value and future performance. However, transactions that are conducted to meet tax obligations are generally seen as routine and less indicative of an executive's confidence in the company.
For those interested in American Well Corp's stock performance and insider transactions, further details and updates can be found in the company's SEC filings.
In other recent news, American Well Corp reported substantial strides in its Q2 2024 financial performance, with revenue of $63 million surpassing consensus estimates. The adjusted EBITDA loss of $35 million was more favorable than the projected $40 million loss. This positive financial outcome led TD Cowen and Needham to maintain their hold ratings on American Well, with TD Cowen raising the price target to $12.00 from $2.00.
American Well's collaboration with the Defense Health Agency (DHA) is progressing as planned, with services being rolled out at five initial sites and full deployment expected in December 2024. The company's shift towards facilitating hybrid care models is anticipated to broaden its range of services and solutions.
In addition, American Well has amended the employment agreement with Kathy Weiler, the Chief Commercial & Growth Officer, providing her with various benefits should she leave her position after June 1, 2025. These are among the recent developments that investors should note as they follow American Well's strategic initiatives and financial performance.
InvestingPro Insights
To provide additional context to the recent insider transaction at American Well Corp (NYSE:AMWL), let's examine some key financial metrics and insights from InvestingPro.
According to InvestingPro data, American Well Corp has a market capitalization of $136.27 million as of the latest available information. This relatively small market cap reflects the company's position in the competitive healthcare technology sector.
InvestingPro Tips highlight that AMWL holds more cash than debt on its balance sheet, which could be seen as a positive factor for financial stability. However, the company is also quickly burning through cash, which aligns with the negative operating income of $235.81 million reported for the last twelve months as of Q2 2024.
The company's revenue for the same period stands at $254.91 million, with a revenue growth rate of -7.27%. This decline in revenue, coupled with the operating loss, underscores the challenges AMWL faces in achieving profitability. In fact, one of the InvestingPro Tips notes that analysts do not anticipate the company will be profitable this year.
Despite these financial headwinds, AMWL has shown strong stock performance in the short term. InvestingPro data indicates a 17.93% price return over the past month and an impressive 53.5% return over the last three months. This recent stock momentum could be of interest to investors monitoring the company's progress.
It's worth noting that AMWL does not pay a dividend to shareholders, which is not uncommon for growth-oriented companies in the healthcare technology space that are prioritizing reinvestment in the business.
For readers interested in a more comprehensive analysis, InvestingPro offers additional tips and insights beyond what's discussed here. There are 5 more InvestingPro Tips available for AMWL, which could provide valuable information for those considering an investment in the company.
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