BOSTON—Vukasin Paunovich, Executive Vice President of Enterprise Platforms at American Well Corp (NYSE:AMWL), recently sold 3,213 shares of the company's Class A common stock. The shares were sold at an average price of $9.2224 each, totaling approximately $29,631. Following this transaction, Paunovich holds 116,565 shares directly. The company, currently valued at $150.67 million, has shown strong financial stability with a healthy current ratio of 2.92. According to InvestingPro analysis, AMWL maintains more cash than debt on its balance sheet.
The sales were executed on December 2, 2024, as part of an automatic "sell to cover" transaction to address tax liabilities arising from the vesting and settlement of restricted stock units. This transaction was not discretionary, according to the company's filing with the Securities and Exchange Commission. Notably, analyst price targets for AMWL range from $9 to $20, with two analysts recently revising their earnings expectations upward for the upcoming period.
In other recent news, American Well Corporation, also known as Amwell, announced stable third-quarter revenues of $61 million, despite a slight decrease in visits and subscription revenue. The company's adjusted EBITDA improved to negative $31 million, marking progress from the previous quarter and year. The company also adopted a new inducement plan, granting awards to its newly appointed CFO, Mark Hirschhorn, with RSUs valued at $2.5 million, vesting over a four-year period.
Amwell also revealed ambitious plans for the full deployment of its Defense Health Agency contract by the end of 2024 and is on track for cash flow positivity by 2026. Despite a 5% drop in subscription revenue from the previous quarter, the company maintains a strong balance sheet with $245 million in cash and no debt.
Analysts noted a decline in sales and marketing expenses, hinting at a potential reduction in growth investments. However, they also expect new contracts to contribute significantly to subscription revenue growth in 2025. These recent developments come as investors anticipate the company's 2025 guidance, to be revealed during the next earnings call in February 2025.
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