Phyllis Gotlib, President of International operations at American Well Corp (NYSE:AMWL), has sold a total of 3,574 shares of the company's Class A Common Stock, netting over $28,000 in the transaction. The sale took place on September 3, 2024, with the shares priced at $7.8719 each.
The transaction was conducted to cover the tax liability associated with the vesting and settlement of restricted stock units on September 1, 2024. According to the footnotes in the Form 4 filing, the sale was executed through an automatic "sell to cover" transaction and was not a discretionary trade by Gotlib.
Following this transaction, Gotlib's direct holdings in American Well Corp have decreased, but she still maintains a significant stake in the company. The Form 4 filing also notes indirect ownership of 64,250 Class A Common shares held by Gotlib's husband.
Investors often keep a close eye on insider transactions as they can provide insights into an executive's perspective on the company's future prospects. However, in this case, the sale appears to be for personal tax obligations rather than a reflection of Gotlib's outlook on American Well Corp's performance.
American Well Corp, headquartered in Boston, MA, is recognized in the industry for providing telehealth solutions and services. The company continues to play a significant role in the evolving landscape of healthcare services.
In other recent news, American Well Corp reported a favorable second-quarter 2024 revenue of $63 million, surpassing consensus estimates. The company's adjusted EBITDA loss of $35 million was less than the projected $40 million loss. This positive financial performance led TD Cowen to increase the price target for American Well Corp to $12.00, up from the previous $2.00, while maintaining a Hold rating on the stock.
The company has also amended the employment agreement with its Chief Commercial & Growth Officer, Kathy Weiler. If Weiler leaves her position after June 1, 2025, she will be entitled to a range of benefits, including accrued compensation, unpaid annual bonuses, and COBRA health benefits for a year. This is part of the company's ongoing adjustments to its executive compensation arrangements.
Furthermore, American Well Corp confirmed its revenue outlook for 2024, improving its adjusted EBITDA forecast by $10 million due to effective cost management strategies. The company has also received initial positive feedback from the Defense Health Agency, with the deployment of its services remaining on track. Other recent developments include expansions and renewals, indicating customer satisfaction with its Converge platform, and leadership changes with Co-founder Roy Schoenberg transitioning to Executive Vice Chairman and Ido Schoenberg becoming the sole Chief Executive Officer.
InvestingPro Insights
In light of Phyllis Gotlib's recent stock sale, investors may find additional context in the financial health and performance metrics of American Well Corp (NYSE:AMWL) as reported by InvestingPro. Currently, the company holds a market capitalization of approximately $119.93 million, which reflects its relative size within the industry. Notably, American Well Corp's revenue for the last twelve months as of Q2 2024 stands at $254.91 million, although it has experienced a decline in revenue growth of 7.27% during the same period. This suggests challenges in increasing sales or facing competitive pressures.
InvestingPro Tips highlight that American Well Corp is managing its finances prudently by maintaining more cash than debt on its balance sheet, which could provide resilience in times of economic uncertainty. However, the company is also quickly burning through cash, a situation that investors should monitor closely. Furthermore, analysts are not optimistic about the company's profitability for the current year, which could be a point of concern for potential investors. For those seeking more detailed analysis, InvestingPro offers an additional 10 tips on American Well Corp, accessible at InvestingPro.
The stock's performance has been underwhelming over the past year, with a significant price reduction of 74.03%. This trend could be indicative of market sentiment or internal challenges faced by the company. Despite this, analysts have set a fair value estimate at $12, suggesting a potential upside from the previous close price of $7.79. This discrepancy between current price and analyst targets may indicate an opportunity for investors who believe in the company's long-term prospects.
As American Well Corp continues to navigate the competitive field of telehealth, these InvestingPro insights and data metrics can help investors make more informed decisions regarding their investment in the company.
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