Oscar Health, Inc. (NYSE:OSCR) EVP and Chief Insurance Officer, Alessandrea C. Quane, has sold a total of $328,806 worth of company stock, according to a recent SEC filing. The transactions, which took place on June 6, 2024, involved the sale of 16,793 shares of Class A Common Stock at a weighted average price of $19.58, with individual sale prices ranging from $19.45 to $19.63.
This sale was conducted under a Rule 10b5-1 trading plan, which was established well in advance of the transaction date. Such plans allow company insiders to sell a predetermined number of shares at a predetermined time to avoid accusations of trading on insider information. In this case, the plan was put in place to satisfy tax withholding obligations related to the vesting of previously granted equity awards.
The SEC filing also reported that Quane exercised options to acquire 31,250 shares of Class A Common Stock on June 5. These shares were obtained at no cost, as they represent restricted stock units that vested as part of an equity award program. The vesting schedule for these units began with 25% of the shares on December 5, 2021, and continued with the remaining shares in 12 equal quarterly installments.
Following these transactions, Quane's direct holdings in Oscar Health amount to 267,929 shares of Class A Common Stock. Additionally, the executive holds an indirect interest in 76,857 shares through the Alessandrea C Quane 2024 GRAT, an irrevocable trust.
Investors often monitor the buying and selling activities of company executives as these transactions can provide insights into the insiders' perspectives on the company's current valuation and future prospects. However, it's important to note that there can be various reasons for an insider to sell their holdings, and such transactions do not always reflect their outlook on the company's financial health.
In other recent news, Oscar Health Inc has posted its first profitable quarter in Q1 2024, reporting total revenue of $2.1 billion, a 46% increase year-over-year, and net income of $178 million. This is a significant turnaround from the previous year's figures, reflecting solid growth in both existing and new markets. However, BofA Securities recently revised its stance on the company, downgrading the stock from Buy to Neutral, due to concerns over the potential impact of political uncertainty and the expected expiration of exchange subsidies crucial to the company's earnings. The subsidies, part of legislation passed under the Biden administration, are set to expire on January 1, 2026. The possible discontinuation could significantly affect Oscar Health's earnings, with an estimated 60% earnings per share (EPS) difference under scenarios where they either expire or are extended. These recent developments have led to a more balanced risk-reward scenario for the company. Despite this, BofA Securities has expressed increased confidence in Oscar Health's market stability, raising the company's share price target from $22.00 to $25.00 while maintaining a Buy rating.
InvestingPro Insights
As Oscar Health, Inc. (NYSE:OSCR) sees its EVP and Chief Insurance Officer, Alessandrea C. Quane, adjust her stake in the company, investors are keen to understand the broader financial landscape of OSCR. A glance at the real-time data from InvestingPro reveals a company with a dynamic financial profile. Oscar Health's market capitalization stands at a robust $4.58 billion, underlining its significant presence in the industry. Despite not being profitable over the last twelve months, with a P/E ratio of -80.42 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at -85.59, the company has shown a remarkable revenue growth rate of 45.77% for the same period. This growth is further highlighted by a 36.08% strong return over the last three months, and an even more impressive 140.44% price total return over the last six months.
InvestingPro Tips for Oscar Health indicate that while the company suffers from weak gross profit margins, currently at 21.87%, it is expected to see net income growth this year. This is a potential indicator of an improving financial outlook, which may be a factor for investors to consider. Moreover, analysts predict the company will turn profitable this year, which could signal a positive trajectory for the company's stock. It's worth noting that Oscar Health does not pay a dividend to shareholders, which may influence investment decisions for those seeking regular income streams.
For investors seeking additional insights, there are more InvestingPro Tips available that could provide a deeper understanding of Oscar Health's financial health and stock performance. With a coupon code PRONEWS24, users can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering access to exclusive data and analysis that can help in making informed investment decisions.
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