Phyllis Gotlib, President of International at American Well Corp (NYSE:AMWL), sold shares of the company's stock valued at approximately $5,320, according to a recent SEC filing. The transactions occurred on April 1, 2024, with the sales executed at a price of $0.7721 per share.
The filing revealed that Gotlib disposed of 6,891 shares of Class A Common Stock. Following the transaction, Gotlib's direct holdings in the company amounted to 2,459,579 shares. Additionally, indirect ownership through her husband totals 1,285,011 shares of Class A Common Stock.
The disclosed sale was conducted to cover tax liabilities associated with the vesting and settlement of restricted stock units. The filing specifies that the sales were non-discretionary, carried out through an automatic "sell to cover" transaction.
Investors often monitor insider transactions as they provide insights into executives' perspectives on the company's stock value. In the case of Gotlib's transaction, it was related to the automatic fulfillment of tax obligations rather than a market-driven decision.
InvestingPro Insights
As Phyllis Gotlib, President of International at American Well Corp (NYSE:AMWL), liquidates a portion of her holdings for tax purposes, investors may be curious about the broader financial health and market sentiment surrounding AMWL. Recent data from InvestingPro paints a picture of a company facing certain challenges.
With a market capitalization of approximately $219.83 million, AMWL is navigating through a period of financial strain. The company's P/E ratio stands at a negative -0.32, reflecting investor concerns about profitability, which aligns with analysts' expectations that the company will not be profitable this year, as per an InvestingPro Tip. This sentiment is further underscored by a significant negative operating income margin of -96.99% for the last twelve months as of Q4 2023.
Moreover, the stock has experienced a stark decline in investor confidence, as evident from the price total return metrics. AMWL's stock has taken a notable hit, with a one-week price total return of -12.1% and a staggering one-year price total return of -67.18%. This downward trend is also captured by another InvestingPro Tip highlighting the stock's poor performance over the last month.
However, it's not all negative for American Well Corp. The company holds more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations, suggesting a degree of financial stability in the face of current challenges. These insights could be particularly valuable for investors considering the stock's current trading near its 52-week low.
For those interested in a deeper dive into the financials and future prospects of AMWL, additional InvestingPro Tips are available. By using the coupon code PRONEWS24, readers can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription to access these valuable insights. Currently, there are 10 additional tips listed on InvestingPro that could further inform investment decisions regarding American Well Corp.
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