American Well Corp's president sells shares worth $7,656

Published 06/01/2025, 22:40
American Well Corp's president sells shares worth $7,656

Phyllis Gotlib, President of International at American Well Corp (NYSE:AMWL), recently reported the sale of 1,068 shares of Class A Common Stock. The telemedicine company's stock has declined nearly 69% over the past year, though InvestingPro analysis shows it maintains a Fair financial health rating with more cash than debt on its balance sheet. The shares were sold at an average price of $7.1688, amounting to a total transaction value of $7,656. Following this sale, Gotlib holds 108,840 shares directly. Additionally, 64,250 shares are held indirectly by her husband.

The sale was conducted as an automatic "sell to cover" transaction to address tax liabilities from vested restricted stock units, as noted in the filing.

In other recent news, American Well Corporation, commonly known as Amwell, has reported stable third-quarter revenues of $61 million, despite a slight decrease in visits and subscription revenue. The company's adjusted EBITDA improved to negative $31 million, demonstrating progress from the previous quarter and year. Amwell also disclosed plans for the full deployment of its Defense Health Agency contract by the end of 2024 and is on track for cash flow positivity by 2026.

Additionally, the company has adopted a new inducement plan, approved by the board, which allows for equity or equity-based awards. The newly appointed Chief Financial Officer, Mark Hirschhorn, received inducement awards as part of his employment agreement, including Restricted Stock Units (RSUs) valued at $2.5 million. These RSUs will vest over a four-year period, with an additional long-term incentive award that could reach $5 million based on EBITDA and company valuation targets.

Amwell is exploring revenue-sharing opportunities with third-party providers to enhance service integration. Despite a 5% decrease in subscription revenue from the previous quarter, the company maintains a strong balance sheet with $245 million in cash and no debt. These recent developments are among the factors investors are monitoring as they anticipate the company's 2025 guidance, to be revealed during the next earnings call in February 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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