Accolade, Inc. (NASDAQ:ACCD) President Robert Cavanaugh recently reported a sale of company shares, according to a filing with the Securities and Exchange Commission. The transaction, which took place on October 11, involved the sale of 217 shares at a price of $3.771 per share, totaling $818. This sale was executed to cover tax withholding obligations associated with the vesting and settlement of Restricted Stock Units (RSUs) and was not a discretionary trade by Cavanaugh.
Additionally, on October 10, Cavanaugh acquired 710 shares of common stock through the vesting of RSUs. These RSUs converted into common stock at a one-to-one ratio, as outlined in the filing. Following these transactions, Cavanaugh holds a total of 197,202 shares of Accolade's common stock.
In other recent news, Accolade Inc. reported strong second-quarter results for 2025, surpassing revenue expectations with a total of $106.4 million and exceeding its adjusted EBITDA guidance. The company also confirmed its fiscal year 2025 revenue guidance between $460 million to $475 million and projected a positive adjusted EBITDA of $15 million to $20 million. However, Wells Fargo (NYSE:WFC) has revised the price target for Accolade downwards to $6.00 due to concerns over the timing of deal closures. Stephens and Canaccord Genuity (TSX:CF) also adjusted their price targets for Accolade, reflecting a 12% revenue growth for the company in fiscal years 2025 and 2026. Truist Securities and BofA Securities have followed suit, reducing their price targets but maintaining Buy ratings. These revisions come amidst news of Accolade's larger deals still in negotiation and potential slower revenue growth in fiscal year 2026 due to staggered launches. Despite these developments, the companies expressed confidence in Accolade's future performance, highlighting its strong pipeline across employers, health plans, and government segments.
InvestingPro Insights
Accolade's recent insider transaction occurs against a backdrop of challenging market conditions for the company. According to InvestingPro data, Accolade's stock has experienced significant volatility, with a 57.23% decline over the past six months and a 9.16% drop in just the last week. This aligns with the InvestingPro Tip that the stock "has taken a big hit over the last six months."
Despite these headwinds, Accolade's revenue growth remains positive, with a 16.04% increase in the last twelve months as of Q2 2025. However, the company is not currently profitable, as indicated by its negative operating income of $93.68 million over the same period. This financial situation is reflected in the InvestingPro Tip stating that "Analysts do not anticipate the company will be profitable this year."
It's worth noting that Accolade operates with a moderate level of debt and its liquid assets exceed short-term obligations, which could provide some financial flexibility as the company navigates its current challenges. These insights are among the 10 additional tips available on InvestingPro, offering investors a more comprehensive view of Accolade's financial health and market position.
For readers interested in a deeper analysis, InvestingPro offers a total of 10 tips for Accolade, providing a more thorough understanding of the company's financial situation and market performance.
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