American Well Corp's (NYSE:AMWL) Chief Accounting Officer, Paul Francis McNeice, recently sold shares of the company's stock, primarily to cover tax liabilities associated with restricted stock units. On April 1, McNeice sold 761 shares at a price of $0.7721 per share, totaling approximately $587.
This transaction was part of an automatic "sell to cover" arrangement, which is a common method executives use to handle the taxes due when restricted stock units vest. Following this sale, McNeice still holds 198,626 shares of American Well Corp, indicating a continued investment in the company's future.
Investors often keep an eye on insider transactions as they can provide insights into an executive's view of the company's prospects. However, it's important to note that sales like these, which are related to tax obligations, may not necessarily reflect a change in the executive's confidence in the company.
American Well Corp, headquartered in Boston, Massachusetts, operates in the healthcare sector, providing telehealth solutions that aim to enhance patient access to quality care. As the healthcare industry continues to evolve with technology, American Well Corp remains at the forefront of this transformation.
Transactions of this nature are publicly reported for transparency and to comply with securities regulations. Shareholders and potential investors can access these details to stay informed about the financial dealings of company insiders.
InvestingPro Insights
As American Well Corp (NYSE:AMWL) navigates the complexities of the telehealth market, recent financial metrics and stock performance provide a snapshot of the company's current standing. With a market capitalization of $219.83 million, the company's financial health is a key consideration for investors. Notably, AMWL holds more cash than debt on its balance sheet, which is a positive sign in terms of financial stability. However, the company is quickly burning through cash and analysts do not anticipate profitability this year.
InvestingPro Data indicates that AMWL's revenue for the last twelve months as of Q4 2023 stands at $259.05 million, with a gross profit margin of 36.58%. Despite these figures, the company's revenue growth has declined by 6.55% over the same period, and its operating income margin was deeply negative at -96.99%. These financials reflect some of the challenges the company faces.
The stock's performance also suggests investor caution, with the price having fallen significantly over the last three months, trading near its 52-week low, and not offering a dividend to shareholders. The price of AMWL's stock at the previous close was $0.76, which is a considerable drop from its 52-week high, reflecting a 27.72% of that peak value. The InvestingPro Tips further highlight that the stock has fared poorly over the last month, with a one-month price total return of -28.48%.
For investors considering a deeper dive into American Well Corp's financials and stock performance, there are additional InvestingPro Tips available at Investing.com/pro/AMWL. Readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to a wealth of insights, including 9 more tips on AMWL to inform their investment decisions.
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