American Well Corp (NYSE:AMWL) director Deborah C. Jackson has sold a total of 42,202 shares of the company's Class A Common Stock, according to a recent SEC filing. The transaction, which took place on June 24, 2024, was executed at a price of $0.4072 per share, resulting in a total value of $17,184.
This sale was carried out in accordance with a pre-arranged Rule 10b5-1 trading plan, which Jackson had adopted on November 13, 2023. The plan is typically used by company insiders to sell shares over a determined period of time to avoid accusations of insider trading. In this case, the sale was made to cover tax liabilities that arose from the vesting and settlement of restricted stock units on June 17, 2024.
Following this transaction, Jackson still holds a significant stake in the company, with 636,683 shares of American Well Corp's Class A Common Stock remaining in her direct ownership. Additionally, there are 12,250 shares owned indirectly by her spouse.
Investors often monitor insider sales as they can provide insights into an insider's view of the company's current valuation and future prospects. However, it is also common for executives to sell shares for personal financial planning reasons, unrelated to their outlook on the company's future performance.
American Well Corp, based in Boston, Massachusetts, operates in the healthcare sector, providing telehealth services that enable patients to connect with health care providers remotely. The company's shares are publicly traded on the New York Stock Exchange under the ticker symbol AMWL.
In other recent news, American Well Corp, also known as Amwell, has announced several significant developments. At its annual shareholder meeting, key proposals were approved, including the election of directors, ratification of the company's independent auditor, executive compensation, and a reverse stock split. Shareholders also expressed support for the company's board of directors and strategic decisions.
Amwell recently reported a 7% decline in total revenue to $59.5 million for the first quarter of 2024. Despite this, the company is shifting towards subscription software, which it expects to drive gross margin expansion. The firm Piper Sandler maintained a neutral stance on Amwell, emphasizing the need for stabilization in subscription revenue and clearer signs of the company's projected return to double-digit growth in 2025.
In addition, the company announced a significant change in its leadership structure. Co-founder Roy Schoenberg will transition from his dual role as president and co-CEO to become the Executive Vice Chairman of the company's Board of Directors. His brother, Ido Schoenberg, will take over as the sole Chief Executive Officer. These are among the recent developments in the company's ongoing efforts to expand its presence within the healthcare solutions sector.
InvestingPro Insights
American Well Corp (NYSE:AMWL) has recently seen notable insider activity, with director Deborah C. Jackson selling over 42,000 shares. Investors tracking AMWL might be interested in some key metrics and insights that could shed light on the company's financial health and stock performance.
InvestingPro Data indicates that American Well Corp currently holds a market cap of approximately $107.76 million USD. Despite challenges in revenue growth, with a decrease of 8.08% over the last twelve months as of Q1 2024, the company has managed a significant return over the last week, with a 10.39% price total return.
The company's stock performance has been under pressure, trading near its 52-week low and showing a notable decline over the past year, with a 1 Year Price Total Return of -80.48%. The current price of $0.41 per share is only 14.7% of the 52-week high, reflecting the bearish trend in the stock's price.
InvestingPro Tips highlight some critical aspects of American Well Corp's financial position. The company holds more cash than debt on its balance sheet, which is a positive sign for liquidity. Additionally, liquid assets exceed short-term obligations, providing further evidence of the company's ability to cover immediate liabilities.
However, analysts do not anticipate the company will be profitable this year, and the valuation implies a poor free cash flow yield. Moreover, the company is quickly burning through cash, which could be a concern for investors looking for sustainable financial management.
For those considering an investment in American Well Corp or seeking to understand the broader context of the insider sale, additional InvestingPro Tips are available, providing deeper insights into the company's financials and stock performance. There are 11 more tips listed on InvestingPro, which can be accessed by visiting https://www.investing.com/pro/AMWL. To enrich your investment research experience, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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