Phyllis Gotlib, President of International at American Well Corp (NYSE:AMWL), has sold 3,656 shares of the company's Class A Common Stock. The healthcare technology company, currently valued at $150.67 million, maintains strong liquidity with a current ratio of 2.92, according to InvestingPro data. The shares were sold at an average price of $9.2224 each, amounting to a total transaction value of $33,717. Following this transaction, Gotlib holds 109,908 shares directly. The sale was conducted to cover tax liabilities associated with the vesting of restricted stock units, as noted in the filing. While the stock has shown strong returns over the past three months, it remains down approximately 69.5% year-to-date. For deeper insights into AMWL's valuation and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, American Well Corporation has made significant strides in its operations and financial performance. The company recently announced the adoption of a new inducement plan, which includes the granting of awards to its newly appointed CFO, Mark Hirschhorn. The plan, set to take effect on November 4, 2024, allows for equity-based awards and has allocated over 1.2 million shares of Class A common stock for this purpose. As part of his employment agreement, Hirschhorn will receive inducement awards valued at $2.5 million, vesting over four years, with an additional incentive that could reach $5 million based on EBITDA and company valuation targets.
In terms of financial performance, Amwell reported stable third quarter revenues of $61 million, an improvement in its adjusted EBITDA to negative $31 million, and plans for full deployment of its Defense Health Agency contract by the end of 2024. The company is also on track for cash flow positivity by 2026. However, subscription revenue fell by 5% from the previous quarter, leading to a revised revenue guidance for 2024 to $247-$252 million. Despite these challenges, the company maintains a strong balance sheet with $245 million in cash and no debt.
Analysts have noted a decline in sales and marketing expenses, which could indicate a potential reduction in growth investments. However, they also expect new contracts to contribute significantly to subscription revenue growth in 2025. These are among the recent developments that investors are monitoring as they anticipate the company's 2025 guidance, to be revealed during the next earnings call.
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