Phreesia, Inc. (NYSE:PHR) CEO Chaim Indig has sold a total of $272,413 worth of company stock, according to a recent SEC filing. The transactions occurred on April 8, 2024, with the sale prices ranging from $22.6161 to $23.0163 per share.
The filing indicated that Indig disposed of 12,043 shares of Phreesia common stock. The sales were executed in multiple transactions at varying prices. For a portion of the shares, specifically 11,923 shares, the weighted average price was $22.6161, with individual sales prices ranging from $22.00 to $22.98. The remaining 120 shares were sold at an average price of $23.0163, with the price for each share sold falling between $23.00 and $23.04.
It's noted in the filing footnotes that these sales were part of a mandatory sell-to-cover policy enacted by Phreesia to satisfy the tax withholding obligations related to the settlement of an award of restricted stock units.
Following these transactions, Indig still holds a significant amount of Phreesia stock. The SEC filing discloses that after the sales, Indig retained 1,225,397 shares of common stock directly. Additionally, the filing mentions that 255,000 shares are held indirectly through the Indig Dynasty Trust, for which Indig's sister-in-law serves as the investment and distribution advisor, with immediate family members being the sole beneficiaries of this trust.
Investors often monitor insider transactions such as these for insights into executive confidence and company health. However, sales related to tax obligations are a routine financial planning strategy and don't necessarily indicate a change in the executive's view of the company's future prospects.
InvestingPro Insights
As Phreesia, Inc.'s CEO Chaim Indig navigates through the sale of company stock, it's essential for investors to consider the broader financial context in which the company operates. According to InvestingPro data, Phreesia currently holds a market capitalization of approximately $1.31 billion. Despite a notable revenue growth of 26.84% in the last twelve months as of Q4 2024, the company is not expected to be profitable this year, as reflected in a negative P/E ratio of -9.20.
InvestingPro Tips reveal that Phreesia operates with a moderate level of debt and has not been profitable over the last twelve months. Additionally, Phreesia does not distribute dividends to shareholders, indicating that the company is likely reinvesting earnings back into the business to fuel growth. These factors are critical for investors to consider, especially when analyzing the implications of insider transactions.
The company's revenue growth and gross profit margin of 65.19% demonstrate strong operational performance, yet the negative operating income margin of -36.98% highlights the challenges Phreesia faces in achieving profitability. With the next earnings date set for May 30, 2024, investors will be keenly awaiting updates on the company's financial progress.
For those interested in a deeper dive into Phreesia's financial health and future prospects, InvestingPro offers additional tips and metrics. Utilize coupon code PRONEWS24 to receive an extra 10% off a yearly or biyearly Pro and Pro+ subscription for access to comprehensive insights that could help inform investment decisions.
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