Oscar Health, Inc. (NYSE:OSCR) Executive Vice President and Chief Insurance Officer Alessandrea C. Quane sold shares in the company worth over half a million dollars, according to recent filings with the Securities and Exchange Commission. The transactions, which took place on June 1st and June 3rd, 2024, involved the sale of Class A Common Stock at prices ranging from $19.09 to $19.46 per share.
The filings show that on June 3rd, Quane sold 25,550 shares at an average price of $19.46, and on June 4th, an additional 668 shares were sold at an average price of $19.09. These sales resulted in a total transaction value of $509,955 for the sold shares.
The sales were executed pursuant to a Rule 10b5-1 trading plan, which had been established prior to February 27, 2023. Such plans allow company insiders to sell shares at predetermined times to avoid accusations of trading on non-public information. The SEC filings indicate that the sales were part of a strategy to satisfy tax withholding obligations related to the vesting of previously granted equity awards.
Additionally, the transactions on June 1st involved the acquisition of shares through the exercise of options, which did not involve any monetary transaction, as the restricted stock units (RSUs) represent a contingent right to receive shares of Class A common stock. The RSUs vested over different periods, with some vesting quarterly starting December 1, 2021, others beginning June 1, 2023, and the latest set starting June 1, 2024.
Following the sale, Quane's ownership in Oscar Health, Inc. stands at 236,679 shares of Class A Common Stock, directly owned, and an additional 76,857 shares indirectly owned through the Alessandrea C Quane 2024 GRAT, as per the SEC filing. The exact number of shares sold at each price within the range is available upon request to the issuer, any security holder of the issuer, or the staff of the Securities and Exchange Commission.
Investors often monitor insider transactions as they can provide insights into an executive's confidence in the company's future performance. However, sales made under 10b5-1 plans are generally considered to be less indicative of an insider's sentiment towards the company, given their pre-arranged nature.
InvestingPro Insights
As Oscar Health, Inc. (NYSE:OSCR) navigates through the complexities of the health insurance sector, its financial metrics and market performance continue to be areas of interest for investors. According to InvestingPro data, Oscar Health is currently trading with a market capitalization of approximately $4.48 billion. Despite not being profitable over the last twelve months, with a negative P/E ratio of -79.75, the company has shown a remarkable revenue growth of 45.77% during the same period.
One of the key InvestingPro Tips suggests that Oscar Health's net income is expected to grow this year, which could signal a turning point for the company's profitability. This is supported by analysts' predictions that the company will be profitable this year. Additionally, the company has experienced a large price uptick over the last six months, with a 128.31% six-month price total return, reflecting investor optimism.
However, potential investors should be aware of the company's weak gross profit margins, which stand at 21.87%, and its high Price / Book multiple of 4.41. These figures suggest that while the company is growing its top-line revenue, it is doing so with a lower efficiency in converting sales into profit, and its assets may be valued relatively high compared to its book value.
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