Health Catalyst , Inc. (NASDAQ:HCAT) Chief People Officer Linda Llewelyn has sold a total of 2,066 shares of the company's common stock, according to a recent SEC filing. The transaction, executed on May 15, 2024, was carried out at a price of $7.00 per share, resulting in a total sale amount of $14,462.
The sale was conducted under a prearranged trading plan that Llewelyn adopted on May 23, 2023, in line with Rule 10b5-1, which allows company insiders to set up a predetermined schedule for buying and selling stocks at a time when they are not in possession of material non-public information. This approach to trading is intended to prevent any accusations of insider trading.
Following the transaction, Llewelyn still owns 124,160 shares of Health Catalyst, indicating a continued investment in the company's future. The sale represents a small fraction of her total holdings, suggesting that this might be a part of a regular portfolio management strategy rather than a reflection on the company's current performance or future outlook.
Health Catalyst, based in Salt Lake City, Utah, specializes in providing data and analytics technology and services to healthcare organizations. The company's stock transactions by executives are closely watched by investors for insights into management's perspective on the company's valuation and prospects.
InvestingPro Insights
The recent sale of Health Catalyst, Inc. (NASDAQ:HCAT) shares by Chief People Officer Linda Llewelyn has caught the attention of investors, raising questions about the company's financial health and future prospects. To provide a broader context, let's consider some key financial metrics and insights from InvestingPro.
Health Catalyst's market capitalization currently stands at approximately $408.52 million, reflecting the market's valuation of the company. Despite the company not being profitable over the last twelve months, as indicated by a negative P/E ratio of -3.75, analysts are optimistic about its future. This optimism is supported by the InvestingPro Tips, which highlight that Health Catalyst holds more cash than debt on its balance sheet and that its net income is expected to grow this year. Additionally, the company's liquid assets exceed its short-term obligations, providing it with financial flexibility.
Investors may also be encouraged by Health Catalyst's strong return over the last month, with a price total return of 23.92%. This could be indicative of market confidence or a positive reaction to recent company developments. It's worth noting, however, that the company does not pay a dividend, which may influence the investment strategy of income-focused shareholders.
For those interested in a deeper analysis, InvestingPro offers additional insights. Currently, there are six more InvestingPro Tips available for Health Catalyst, which can be accessed at: https://www.investing.com/pro/HCAT. These tips could provide valuable information for investors looking to make an informed decision about their stake in the company. Moreover, users can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enhancing their investment research tools.
Lastly, with a fair value estimation by analysts at $10.5 and InvestingPro's fair value at $9.15, there appears to be potential upside from the current price of $6.95 per share. This discrepancy suggests that investors might want to keep an eye on Health Catalyst for possible growth opportunities.
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