BofA update shows where active managers are putting money
Phyllis Gotlib, the President of International at American Well Corp (NYSE:AMWL), recently executed a notable stock transaction. According to a filing with the Securities and Exchange Commission, Gotlib sold 4,781 shares of American Well’s Class A common stock on March 3, 2025, at a price of $8.7975 per share. This sale, totaling $42,060, was conducted to cover tax liabilities arising from the vesting of restricted stock units on March 1, 2025. The transaction was an automatic "sell to cover" and did not involve discretionary trading by Gotlib. The stock, currently trading at $8.75, has experienced significant volatility, declining 14% in the past week. According to InvestingPro analysis, the company appears undervalued based on its Fair Value assessment.
In addition to the sale, Gotlib acquired 44,168 shares of restricted stock units, which will vest quarterly over two years. Following these transactions, Gotlib directly owns 147,998 shares, while indirectly, through her husband, she holds 64,250 shares. InvestingPro data shows the company maintains strong liquidity with a current ratio of 2.85 and holds more cash than debt on its balance sheet. Subscribers can access 8 additional ProTips and a comprehensive Pro Research Report for deeper insights into AMWL’s financial health and growth prospects.
In other recent news, American Well Corp. has reported its fourth-quarter 2024 earnings, showcasing steady revenue at $71 million, consistent with the previous year. Subscription revenue saw a significant rise of 36%, reaching $37 million, although the company experienced an 18% decline in completed visits. Despite these mixed results, American Well’s gross profit margin improved to 48%, an 11-point increase from the previous quarter. The company has set its revenue guidance for 2025 between $250 million and $260 million, with subscription revenue expected to constitute nearly 60% of the total. In light of these developments, Needham has maintained a Hold rating on American Well shares following the earnings report. This decision is influenced by the company’s lower-than-anticipated forecast for fiscal year 2025, which is partly due to the sale of its virtual psychiatric care division. American Well is focusing on more profitable government contracts, including its ongoing plans with the Defense Health Agency, which remain on schedule. Management has reiterated its goal of achieving positive free cash flow by 2026, despite moderated growth expectations for 2025.
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