In a recent transaction, Robert Shepardson, Chief Financial Officer of American Well Corp (NYSE:AMWL), sold 5,177 shares of the company's stock. The sale was conducted at a price of $7.8719 per share, totaling approximately $40,752. This transaction was disclosed in a filing with the Securities and Exchange Commission.
The sale was made to cover tax liabilities associated with the vesting and settlement of restricted stock units, as noted in the footnotes of the filing. It was executed through an automatic "sell to cover" transaction, indicating that it was not a discretionary trade by Shepardson.
Following the sale, Shepardson's ownership in American Well Corp stands at 112,992 shares. It's important to note that the number of shares owned and the recent transaction have been adjusted to account for a 1-for-20 reverse stock split that took place on July 10, 2024, as mentioned in the footnotes of the SEC filing.
Investors often monitor insider transactions as they can provide insights into the company's financial health and the confidence level insiders have in the company's prospects. The details of such transactions are made public through mandatory filings to ensure transparency and maintain fair trading practices.
In other recent news, American Well Corp has reported a favorable Q2 2024 revenue of $63 million, exceeding consensus estimates. The company's adjusted EBITDA loss of $35 million outperformed the projected $40 million loss. The telehealth service provider also confirmed its revenue outlook for 2024 and improved its adjusted EBITDA forecast by $10 million, attributing this to effective cost management strategies. In response to these results, TD Cowen has upgraded the price target for the company to $12.00, up from the previous $2.00, while maintaining a Hold rating on the stock.
In other developments, American Well Corp has amended the employment agreement with Kathy Weiler, the Chief Commercial & Growth Officer. The company has also announced a series of expansions and renewals, reflecting customer satisfaction with its Converge platform. Moreover, the company received initial positive feedback from the Defense Health Agency (DHA), and the deployment of its services remains on track.
Leadership changes have also been made, with Co-founder Roy Schoenberg transitioning to Executive Vice Chairman of the company's Board of Directors, and Ido Schoenberg assuming the role of sole Chief Executive Officer. These are among the recent developments within the company.
InvestingPro Insights
Amid recent insider transactions at American Well Corp (NYSE:AMWL), investors are closely scrutinizing the company's financial standing and future prospects. The InvestingPro data reveals a market capitalization of $119.93 million, which provides a sense of the company's current valuation in the market. Despite a challenging period, with a negative revenue growth of 7.27% over the last twelve months as of Q1 2023, there are some positive signals. The gross profit margin stands at a healthy 34.2%, indicating that while revenues have declined, the company has retained some level of efficiency in its operations.
From an investment standpoint, the InvestingPro Tips highlight that American Well Corp holds more cash than debt on its balance sheet, which can be a sign of financial stability. Additionally, three analysts have revised their earnings upwards for the upcoming period, suggesting potential optimism about the company's future performance. However, it's essential to note that analysts do not anticipate the company will be profitable this year, and the stock has experienced a significant downturn over the last year, with a six-month price total return of -62.18%.
For those considering an investment in American Well Corp, there are 11 additional InvestingPro Tips available, which can provide deeper insights into the company's financial health and future outlook. With a fair value estimate of $12, as per analyst targets, and an InvestingPro Fair Value of $12.31, there could be potential for upside if the company's strategies align with market recovery and growth expectations.
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