Michael Sherman, a director at Ontrak, Inc. (NASDAQ:OTRK), recently sold shares of the company, according to a filing with the Securities and Exchange Commission. The transaction, dated November 20, involved the sale of 173 shares of common stock at a weighted average price of approximately $1.77 per share, totaling $306. Following this transaction, Sherman no longer holds any shares in the company.
In other recent news, Ontrak Health announced its Q3 2024 financial results, revealing a revenue of $2.6 million, a decrease of 31% compared to the same period last year. This drop in revenue is attributed to the loss of a customer earlier in the year. However, the company reported new customer acquisitions and expansions, including a significant partnership with Sentara Health Plans. Ontrak Health anticipates a 12% to 23% sequential increase in Q4 2024 revenues.
New customer and expansion opportunities represent potential for a 75% to 100% increase in annual revenue, with current contracts expected to generate $11 million to $13 million of annual revenue. Q4 2024 revenue is projected to be between $2.9 million and $3.2 million. Despite a decline in revenue per health plan enrolled member per month, the company's pipeline includes 26 additional active prospects representing approximately 15 million planned lives. These are among the recent developments for Ontrak Health.
InvestingPro Insights
The recent insider sale by Michael Sherman at Ontrak, Inc. (NASDAQ:OTRK) comes at a time when the company is facing significant challenges. According to InvestingPro data, Ontrak's market capitalization stands at a modest $7.68 million, reflecting the company's current struggles.
InvestingPro Tips highlight that Ontrak is quickly burning through cash and analysts anticipate a sales decline in the current year. These factors may have influenced the director's decision to sell his remaining shares. The company's financial health is further underscored by its negative operating income of -$18.35 million in the last twelve months, with an operating income margin of -163.27%.
The stock's performance has been particularly weak, with InvestingPro data showing a one-year price total return of -78.71% as of the latest available data. This aligns with the InvestingPro Tip indicating that the stock price has fallen significantly over the last year and is currently trading near its 52-week low.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Ontrak, providing a deeper understanding of the company's financial position and market performance.
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