American Well Corp (NYSE:AMWL) executive Vukasin Paunovich, who serves as the EVP of Enterprise Platforms, recently sold a total of 3,141 shares of the company's Class A common stock, resulting in proceeds exceeding $24,000. The sale took place on September 3, 2024, with the shares being sold at a price of $7.8719 each.
The transaction was not a discretionary trade by Paunovich but was made to cover tax liabilities associated with the vesting and settlement of restricted stock units on September 1, 2024. An automatic "sell to cover" transaction was utilized for this purpose, as noted in the footnotes of the filing.
Following the sale, Paunovich still holds a substantial number of shares in American Well Corp. As of the transaction date, the executive's ownership stands at 120,176 shares of Class A common stock. This figure includes adjustments for a 1-for-20 reverse stock split that American Well Corp conducted on July 10, 2024, as well as shares acquired through the company's employee stock purchase plan.
Investors tracking insider transactions may view this sale as part of standard financial planning by corporate executives, especially given the non-discretionary nature of the "sell to cover" transaction. It's worth noting that such sales are common practices to fulfill tax obligations following the vesting of equity awards.
American Well Corp, headquartered in Boston, Massachusetts, operates in the business services sector, providing telehealth solutions. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol AMWL.
In other recent news, American Well Corp reported a favorable second-quarter 2024 revenue of $63 million, exceeding consensus estimates. The company's adjusted EBITDA loss of $35 million outperformed the projected $40 million loss. In light of these results, TD Cowen has increased the price target for the company to $12.00, up from the previous $2.00, while maintaining a Hold rating on the stock.
Furthermore, American Well has confirmed its revenue outlook for 2024 and improved its adjusted EBITDA forecast by $10 million, attributing this positive adjustment to effective cost management strategies. The company has also announced a series of expansions and renewals, indicating customer satisfaction with its Converge platform.
In addition to these financial updates, there have been changes to executive employment terms. An amendment to the employment agreement with Kathy Weiler, the Chief Commercial & Growth Officer, has been reported. This amendment includes a range of benefits if Weiler leaves her position without a "Good Reason" on or after June 1, 2025.
Finally, the company has undergone leadership changes, 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
As American Well Corp (NYSE:AMWL) navigates the complexities of the telehealth market, recent transactions by company executives and the performance of AMWL stock have caught the attention of investors. With a market capitalization of $119.93 million, the company holds a unique position in the healthcare technology space. Notably, AMWL's stock price has experienced a significant decline over the past year, with a 74.03% drop year-to-date, reflecting challenges in the market and possibly internal factors.
An InvestingPro Tip highlights that AMWL holds more cash than debt on its balance sheet, which can provide some level of financial stability and flexibility. However, the same source indicates that the company is quickly burning through cash, which raises concerns about its long-term financial sustainability. This is particularly relevant given that analysts do not anticipate AMWL to be profitable this year.
From a valuation standpoint, the company's P/E ratio stands at -0.38, and its adjusted P/E ratio for the last twelve months as of Q2 2024 is -0.53, suggesting that the market has concerns about the company's current profitability. The revenue growth has seen a decline of 7.27% over the last twelve months, which may be indicative of broader sector trends or company-specific issues.
For investors interested in further analysis, there are additional InvestingPro Tips available for AMWL, which can provide deeper insights into the company's financial health and stock performance. These tips can be found at https://www.investing.com/pro/AMWL, offering a comprehensive look at the factors that may influence the company's future.
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