In a recent transaction, Kathy Weiler Johnson, Chief Communications and Growth Officer of American Well Corp (NYSE:AMWL), sold 7,266 shares of the company's Class A Common Stock at an average price of $7.8719, amounting to a total sale value of approximately $57,197. The transaction took place on September 3, 2024, as reported in a Form 4 document filed with the Securities and Exchange Commission.
The sale was carried out to cover tax liabilities related to the vesting of restricted stock units. According to the footnotes in the filing, the sales were part of an automatic "sell to cover" transaction, a non-discretionary trade by the reporting person to satisfy tax obligations.
After the transaction, Weiler Johnson's ownership in American Well Corp stands at 188,027 shares. It's worth noting that the share amounts have been adjusted to reflect a 1-for-20 reverse stock split that the issuer conducted on July 10, 2024. This reverse split proportionately adjusted the number of shares of Class A common stock beneficially owned by the reporting person, including shares underlying outstanding restricted stock units.
Investors often monitor insider transactions as they provide insights into executives' perspectives on their company's stock value. However, in this case, the sale does not necessarily reflect a change in sentiment, as it was executed to meet tax obligations rather than a discretionary decision by the executive.
In other recent news, American Well Corp has reported a favorable second-quarter 2024 revenue of $63 million, outperforming consensus estimates. Additionally, the company's adjusted EBITDA loss of $35 million was less than the projected $40 million loss. In response to these results, TD Cowen has raised the price target for American Well to $12.00, 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 the positive adjustment to effective cost management strategies. The company has also announced a series of expansions and renewals, reflecting customer satisfaction with its Converge platform.
The telehealth company has amended the employment agreement with Kathy Weiler, the Chief Commercial & Growth Officer, providing her with a range of benefits should she leave her position without a "Good Reason" after June 1, 2025. This amendment is part of the company's ongoing adjustments to its executive compensation arrangements.
Lastly, American Well 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 market, recent data from InvestingPro provides a clearer picture of the company's financial position and stock performance. With a market capitalization of $119.93 million, AMWL's valuation reflects the challenges it faces. Notably, the company's Price to Earnings (P/E) ratio stands at -0.38, with an adjusted P/E ratio over the last twelve months as of Q2 2024 at -0.53, indicating that investors are not expecting earnings to cover the current stock price.
An InvestingPro Tip highlights that AMWL holds more cash than debt on its balance sheet, which can be a positive sign of financial stability. However, another tip reveals that analysts do not anticipate the company will be profitable this year, aligning with the negative P/E ratio. Additionally, the company's stock has seen significant downward movement, with a one-year price total return of -74.03% as of the latest data.
For those interested in a deeper dive into American Well Corp's financials and stock performance, InvestingPro offers additional tips and metrics. As of now, there are 10 more tips available on InvestingPro for AMWL that can provide further insights into the company's outlook and potential investment opportunities.
Understanding the context of insider transactions such as those by Kathy Weiler Johnson is crucial, and InvestingPro can offer the additional metrics and tips necessary to make informed decisions. For more detailed analysis and tips on American Well Corp, interested parties can visit https://www.investing.com/pro/AMWL.
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