Evan Roberts, the Chief Operating Officer of Phreesia, Inc. (NYSE:PHR), recently sold shares of the company in a transaction dated October 15. Roberts disposed of 1,843 shares of common stock, with a total transaction value of $38,749. The shares were sold at a weighted average price of $21.0251, with prices ranging from $20.755 to $21.34 per share. This sale was conducted under Phreesia's mandatory sell-to-cover policy to address tax withholding obligations related to the settlement of restricted stock units. Following this transaction, Roberts retains ownership of 753,876 shares in Phreesia.
In other recent news, healthcare software company Phreesia Inc . has posted impressive second-quarter results, including a 19% year-over-year increase in revenue and a positive EBITDA of $7 million, surpassing the consensus estimate of $4 million. The company has maintained its revenue outlook for fiscal year 2025 and increased its EBITDA forecast by $5 million at the midpoint. Phreesia's financial performance also indicates a positive free cash flow for the first time since it became a public entity.
Several analyst firms have revised their financial outlook for Phreesia. Baird increased its price target to $34.00, citing Phreesia's strong growth outlook. Truist Securities also raised its price target to $31.00 due to revised expectations for the company's financial performance in Fiscal Year 2026. Piper Sandler maintained an Overweight rating with a consistent price target of $30.00, while Canaccord Genuity and Needham both sustained their Buy ratings with price targets of $34.00 and $29.00 respectively.
Phreesia has signaled a shift toward sustained profitable growth and provided new guideposts for both client growth and revenue per client for fiscal years 2025 to 2026. The company is also projecting an increase in Active Healthcare Service Clients to 4,500 by the end of fiscal year 2026, up from 4,200 in fiscal year 2025. These are among the recent developments that investors should note.
InvestingPro Insights
While Evan Roberts' recent share sale was part of a mandatory policy, it's worth examining Phreesia's current financial position to provide context for investors. According to InvestingPro data, Phreesia's market capitalization stands at $1.18 billion, reflecting its position in the healthcare technology sector.
The company has shown strong revenue growth, with a 22.1% increase over the last twelve months, reaching $389.96 million. This growth trajectory is supported by a healthy gross profit margin of 66.78%, indicating efficient cost management in its core operations.
However, Phreesia is currently operating at a loss, with an adjusted operating income of -$93.56 million and a negative operating income margin of -23.99%. This aligns with an InvestingPro Tip noting that analysts do not anticipate the company to be profitable this year. Despite this, another InvestingPro Tip highlights that six analysts have revised their earnings upwards for the upcoming period, suggesting potential improvements on the horizon.
For investors considering Phreesia's stock, it's important to note that the company operates with a moderate level of debt and does not pay a dividend, as per additional InvestingPro Tips. These factors, combined with the company's growth and profitability metrics, provide a more comprehensive view of Phreesia's financial health and future prospects.
InvestingPro offers 12 additional tips for Phreesia, providing deeper insights for those looking to make informed investment decisions in the healthcare technology sector.
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