In a recent transaction on May 1, Kurt Knight, the Chief Operating Officer of American Well Corp (NYSE:AMWL), sold 6,085 shares of the company's Class A Common Stock. The shares were sold at a price of $0.5211 each, totaling approximately $3,170.
This sale was conducted to cover tax liabilities related to the vesting of restricted stock units. According to the footnotes in the filing, the shares were disposed of through an automatic "sell to cover" transaction, which was not a discretionary trade by Knight.
Following the transaction, Knight still holds a substantial number of shares in the company, with a reported 3,075,329 shares remaining in his possession.
Investors often monitor insider sales as they can provide insights into an executive's view of the company's current valuation and future prospects. However, in this case, the sale was made for personal tax obligations rather than a reflection of the executive's confidence in the company's performance.
American Well Corp, based in Boston, Massachusetts, specializes in business services within the healthcare sector and is incorporated in Delaware. The company's shares are publicly traded on the New York Stock Exchange.
InvestingPro Insights
In light of the recent insider transaction at American Well Corp (NYSE:AMWL), where COO Kurt Knight sold shares to cover tax liabilities, it's important for investors to consider the broader financial health and market performance of the company. According to InvestingPro, AMWL holds more cash than debt on its balance sheet, which is a positive indicator of the company's liquidity and financial stability. Additionally, AMWL's liquid assets exceed its short-term obligations, providing some reassurance about the company's ability to meet its immediate financial commitments.
However, not all signals are as encouraging. The company has been quickly burning through cash and analysts do not anticipate AMWL will be profitable this year. The stock has also fared poorly over the past month, with a price total return of -31.54%, and has seen a significant decline over the last year, with a -75.46% return. These trends are reflected in the company's current market capitalization, which stands at a modest $169.9M USD.
InvestingPro Tips also highlight that AMWL's valuation implies a poor free cash flow yield and that the stock has not been profitable over the last twelve months. It's worth noting that American Well Corp does not pay a dividend to shareholders, which could be a consideration for those seeking income from their investments.
For investors seeking a deeper analysis, there are additional 11 InvestingPro Tips available, which could provide further insights into AMWL's valuation, performance, and potential future trajectory. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription to access these comprehensive tips and metrics.
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