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Phreesia executive sells over $42k in company stock

Published 12/09/2024, 23:04
PHR
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Phreesia, Inc. (NYSE:PHR) executive David Linetsky, who serves as the Senior Vice President of Life Sciences, recently sold a total of $42,106 worth of company stock, according to the latest SEC filings. The transactions, which occurred on September 10, involved the sale of shares at prices ranging from $22.94 to $23.17 each.


The SEC filing revealed that Linetsky disposed of 1,816 shares of common stock at a weighted average price of $23.2502 per share. Following these transactions, Linetsky still retains 203,318 shares of Phreesia directly, indicating a continued significant investment in the company. Additionally, 95 shares were sold indirectly by his spouse, leaving 9,092 shares owned indirectly after the sales.


The sales were part of a mandatory sell-to-cover policy by Phreesia, which is designed to cover the executive's tax withholding obligations related to the settlement of a restricted stock unit (RSU) award. This automatic mechanism is intended to help executives manage tax liabilities resulting from vested equity awards.


Investors often monitor insider transactions for insights into executive sentiment and company health. In this case, the sales were not discretionary but rather a part of the company's established procedure for handling tax obligations associated with equity compensation.


Phreesia, Inc. specializes in healthcare software solutions, providing a platform for patient intake management and other business services. The company's stock trades under the ticker symbol PHR on the New York Stock Exchange.


In other recent news, Phreesia Inc . reported a 19% year-over-year increase in second-quarter revenue and a positive EBITDA of $7 million, a significant improvement over the previous year's loss. The company also maintained its revenue outlook for fiscal year 2025 and raised its EBITDA forecast, indicating an anticipated improvement in profit margins. This performance led financial services firm Baird to increase its price target for Phreesia to $34, while maintaining an Outperform rating on the stock.


Similarly, Truist Securities adjusted its financial outlook for Phreesia, raising its price target to $31 due to revised expectations for the company's financial performance in Fiscal Year 2026, particularly concerning margin expansion. Piper Sandler also reiterated its Overweight rating on Phreesia shares with a consistent price target of $30.


On the other hand, Canaccord Genuity maintained a Buy rating for Phreesia with a steady price target of $34, highlighting the company's operational efficiency and focus on long-term profitability. Needham also reaffirmed a Buy rating and a price target of $29 for Phreesia, projecting a potential doubling in the adjusted EBITDA margin year over year.


These are recent developments that indicate confidence in Phreesia's financial trajectory and market performance.


InvestingPro Insights


As Phreesia, Inc. (NYSE:PHR) navigates the complexities of the market, recent data from InvestingPro provides a snapshot of the company's financial health and stock performance. Despite the obligatory nature of the recent insider sales, investors looking at Phreesia's broader financial context will find several points of interest.


According to InvestingPro, Phreesia's market capitalization stands at $1.37 billion, reflecting its current valuation in the market. While the stock has experienced a notable decline of 7.51% over the past week, it has shown resilience over a longer period with a strong return of 16.36% over the last three months. This suggests that while there may be short-term volatility, the company has had a positive trajectory recently.


However, it's worth noting that Phreesia is trading at a high Price / Book multiple of 5.46, indicating that the stock may be valued more for its growth potential than its current assets. This is underscored by the fact that analysts do not expect the company to be profitable this year, as it has not been profitable over the last twelve months. Despite this, the company operates with a moderate level of debt, which may provide some financial flexibility.


Investors considering Phreesia's prospects should also be aware of the company's revenue growth, which has been robust at 22.1% over the last twelve months as of Q2 2025. This suggests that while profitability remains a challenge, the company is expanding its top-line figures.


For those interested in a deeper dive into Phreesia's performance and future outlook, there are additional InvestingPro Tips available. Currently, there are 7 more analysts' tips that can provide further insights into Phreesia's stock, including earnings revisions and fair value estimations. These can be accessed through InvestingPro's dedicated page for Phreesia at https://www.investing.com/pro/PHR.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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