Astrana Health appoints new Chief Accounting Officer

In a recent move, Astrana Health, Inc. (ASTH), a $1.57 billion healthcare management company trading at $31.36, has appointed Glenn W. Sobotka as its new Chief Accounting Officer, effective immediately. According to InvestingPro data, the company has demonstrated robust growth with revenue increasing by 47% over the last twelve months. This decision was announced on Monday, marking a significant change in the company’s financial leadership.

Mr. Sobotka, 47, brings a wealth of experience to the role, having previously held the position of Chief Financial Officer at Arkos Health, Inc., and Chief Accounting Officer roles at both Carbon Health, Inc. and agilon health, inc. His extensive background in accounting and financial management spans over 25 years, with notable expertise in leading finance functions and overseeing accounting and financial reporting. He joins a company that maintains a strong financial position, with InvestingPro analysis showing a "GREAT" overall financial health score and a moderate debt-to-equity ratio of 0.66.

The appointment coincides with the transition of John Vong, the outgoing Chief Accounting Officer, to a new role within Astrana Health. Mr. Vong’s contributions to the company as the principal accounting officer have been significant, and he will continue to serve the company in his new capacity.

Astrana Health has agreed upon an employment contract with Mr. Sobotka, which includes an annual salary of $320,000 and the eligibility for a discretionary annual bonus targeting 40% of his base salary. Additionally, Mr. Sobotka was granted 6,432 shares of restricted stock and 8,269 shares of performance-based restricted stock, with vesting conditions tied to performance and time. Wall Street analysts maintain a strong bullish stance on the company, with price targets ranging from $40 to $70 per share. For deeper insights into ASTH’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports.

Mr. Sobotka’s qualifications extend to his education, holding a Bachelor of Business Administration degree in accounting from The College of William and Mary and an M.B.A. from The George Washington University. He is also a Certified Public Accountant.

The company’s selection of Mr. Sobotka was not influenced by any prior arrangements or understandings with other individuals, and there are no familial ties between him and any of Astrana Health’s directors or executive officers. Furthermore, there are no material transactions involving Mr. Sobotka that would necessitate disclosure under SEC regulations.

Astrana Health, headquartered in Alhambra, California, is known for its management consulting services and is listed on The Nasdaq Stock Market LLC under the ticker symbol ASTH. The company has maintained profitability over the last twelve months, with a gross profit margin of 13.3% and positive free cash flow. The information disclosed in this article is based on a press release statement and financial data from InvestingPro, which offers additional insights through its comprehensive Pro Research Reports covering over 1,400 US stocks.

In other recent news, Astrana Health Inc. reported its fourth-quarter 2024 earnings, revealing a significant revenue increase of 88% to $665.2 million compared to the previous year. Despite the revenue surge, the company posted a net loss of $7.0 million, contrasting with a net income of $12.4 million in the same period the previous year. For the full year, Astrana Health’s total revenue increased by 47% to $2.03 billion, although net income decreased to $43.1 million from $60.7 million the prior year. The company also announced its expansion into Nevada and Texas, alongside a $15 million investment in AI and automation technologies.

Analyst reactions to Astrana Health’s financial results were mixed. BofA Securities reduced its price target for the company from $55.00 to $49.00 but maintained a Buy rating, citing concerns over the company’s medical loss ratio and a less optimistic outlook. Truist Securities, however, reiterated its Buy rating with a $50.00 price target following a conference call with Astrana Health’s management. Stifel also maintained a Buy rating but adjusted its price target from $56.00 to $50.00, noting challenges in Medicaid contracts and cost trends.

Astrana Health’s future guidance projects total revenue between $2.5 billion and $2.7 billion for 2025, with adjusted EBITDA ranging from $170 million to $190 million. These projections account for strategic investments and integration costs from planned acquisitions, including the anticipated close of the Prospect Health acquisition in mid-2025. The forthcoming 10-K filing will provide further insights into Astrana Health’s financial health and strategic direction, which investors are likely to monitor closely.

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