American Well Corp (NYSE:AMWL) President of International, Phyllis Gotlib, has recently sold shares of the company's stock, according to a new SEC filing. The transaction, which took place on October 1, 2024, involved the sale of 798 shares at a price of $9.1543 per share, resulting in a total value of approximately $7,305.
The sale was part of an automatic "sell to cover" transaction used to pay the tax liability associated with the vesting and settlement of restricted stock units. This type of sale is commonly executed to cover obligations and does not necessarily reflect a discretionary trade by the reporting person.
Following the transaction, Gotlib still holds a significant number of shares. The filing indicated a remaining direct ownership of 113,788 Class A Common Stock shares. Additionally, there are 64,250 shares held indirectly by Gotlib's husband, further demonstrating a continued investment in the company's future.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on the company's performance and outlook. However, in this case, the transaction appears to be a routine financial move rather than an indicator of corporate strategy or Gotlib's view on the company's value.
American Well Corp, based in Boston, MA, operates within the business services sector, providing telehealth solutions that connect patients with healthcare providers over digital platforms. As the telehealth industry continues to evolve, American Well Corp remains a watched entity in the market.
This filing serves as a standard disclosure of stock transactions by company insiders, ensuring transparency in the dealings of American Well Corp's executives.
In other recent news, American Well Corp, a telehealth company, has reported robust financial results for the second quarter of 2024. The company's revenue for the quarter was $63 million, surpassing consensus estimates. The adjusted EBITDA loss of $35 million was more favorable than the projected $40 million loss. Analyst firms TD (TSX:TD) Cowen and Needham have maintained a Hold rating on the company's shares, with TD Cowen increasing the price target to $12.00, up from the previous $2.00.
The company's ongoing collaboration with the Defense Health Agency (DHA) is progressing as planned, with services being rolled out at five initial sites. This partnership is seen as a significant development, marking American Well's transition from being solely a virtual care provider to a facilitator of hybrid care models.
As part of the company's internal developments, American Well has amended the employment agreement with Kathy Weiler, the Chief Commercial & Growth Officer, entitling her to a range of benefits should she leave her position without a "Good Reason" on or after June 1, 2025. Furthermore, leadership changes have taken place with Co-founder Roy Schoenberg transitioning to Executive Vice Chairman of the company's Board of Directors, and Ido Schoenberg assuming the role of sole Chief Executive Officer.
InvestingPro Insights
Complementing the recent insider transaction at American Well Corp (NYSE:AMWL), InvestingPro data offers additional context to the company's financial position. As of the last twelve months ending Q2 2024, AMWL reported revenue of $254.91 million, with a concerning revenue growth decline of 7.27%. This aligns with an InvestingPro Tip indicating that the company is "quickly burning through cash," which could explain the negative revenue trend.
Despite these challenges, AMWL's stock has shown strong performance in the short term. InvestingPro data reveals a 17.93% price return over the past month and an impressive 53.5% return over the last three months. This recent uptrend might provide some context to the timing of the insider's "sell to cover" transaction.
It's worth noting that AMWL "holds more cash than debt on its balance sheet," according to another InvestingPro Tip. This financial cushion could be crucial as the company navigates its current cash burn situation and works towards profitability.
For investors seeking a more comprehensive analysis, InvestingPro offers 6 additional tips for AMWL, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.