American Well Corp's (NYSE:AMWL) Chief Financial Officer, Robert Shepardson, recently sold shares of the company's stock, primarily to cover tax liabilities related to restricted stock units. The transaction, which was not discretionary, involved the sale of 7,569 shares at a price of $0.7721 per share, totaling over $5,844.
The sale took place on April 1, 2024, and was reported in a Form 4 filing with the Securities and Exchange Commission. According to the filing, the shares were sold through an automatic "sell to cover" transaction, a common method for executives to satisfy tax obligations that arise when restricted stock units vest.
Following the transaction, Shepardson still holds a significant stake in American Well, with 2,784,414 shares remaining in his possession. The company, which is incorporated in Delaware and headquartered in Boston, MA, operates in the business services sector, providing digital health solutions.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on the company's stock value and future performance. In this case, the transaction was related to tax obligations rather than a market-driven sale, which can be an important distinction for investors analyzing the context of the sale.
American Well Corp has not provided any additional comments on the transaction.
InvestingPro Insights
As American Well Corp (NYSE:AMWL) navigates through its financial journey, recent data from InvestingPro shows a mixed financial picture. With a market capitalization standing at approximately $219.83 million, AMWL is a company that investors are keeping an eye on. Notably, the company holds more cash than debt on its balance sheet, which can be a sign of financial stability in turbulent times. This is complemented by the fact that its liquid assets exceed short-term obligations, suggesting that the company is in a good position to meet its immediate financial commitments.
However, it's not all smooth sailing for American Well Corp. The company is quickly burning through its cash reserves, and analysts do not anticipate AMWL will be profitable this year. The stock has fared poorly over the last month, with a one-month price total return of -28.48% and is trading near its 52-week low, indicating that investor sentiment has been bearish. The price, at the previous close, was $0.76.
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For a comprehensive analysis of American Well Corp's financial health, including more InvestingPro Tips that could shed light on the company's cash burn rate and stock performance over the last week, month, and three months, visit https://www.investing.com/pro/AMWL. There are a total of 10 additional tips listed on InvestingPro that could help investors make more informed decisions.
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