American Well (NYSE:AMWL) Announces Quarterly Earnings Results

Key Points

• American Well exceeded quarterly expectations: The telehealth company reported an adjusted loss of $0.59 per share, beating the $0.86 consensus loss estimate, while revenue of $52.05 million topped expectations of $49.87 million. The company remained unprofitable, with a negative net margin of 37.02%.
• Shares fell 3.0% to $10.44 despite the earnings beat. Analysts maintain a consensus “Hold” rating with an average price target of $8.60, although Wells Fargo raised its target to $16 and assigned an “overweight” rating.
• Insiders have recently sold shares: Company insiders sold 29,225 shares worth $268,623 over the past 90 days, while institutional investors and hedge funds own 56.05% of American Well.

American Well (NYSE:AMWL - Get Free Report) released its quarterly earnings data on Tuesday. The company reported ($0.59) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.86) by $0.27, FiscalAI reports. The firm had revenue of $52.05 million during the quarter, compared to analysts' expectations of $49.87 million. American Well had a negative return on equity of 32.11% and a negative net margin of 37.02%.

American Well Trading Down 3.0%

Shares of AMWL traded down $0.32 during mid-day trading on Tuesday, reaching $10.44. The company had a trading volume of 144,344 shares, compared to its average volume of 96,093. American Well has a fifty-two week low of $3.71 and a fifty-two week high of $13.45. The stock has a market cap of $172.78 million, a price-to-earnings ratio of -1.93 and a beta of 1.68. The firm has a fifty day simple moving average of $9.65 and a 200-day simple moving average of $7.12.

Analyst Upgrades and Downgrades

AMWL has been the subject of a number of research analyst reports. Weiss Ratings reiterated a "sell (d-)" rating on shares of American Well in a report on Friday, July 17th. Morgan Stanley increased their target price on shares of American Well from $6.00 to $6.50 and gave the company an "equal weight" rating in a report on Wednesday, May 6th. Wells Fargo & Company boosted their price target on American Well from $9.00 to $16.00 and gave the stock an "overweight" rating in a research note on Friday, July 17th. TD Cowen upped their price target on American Well from $5.00 to $8.00 and gave the stock a "hold" rating in a report on Wednesday, May 6th. Finally, Truist Financial set a $7.50 price objective on shares of American Well in a research report on Monday, June 8th. One research analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $8.60.

Insider Buying and Selling at American Well

In related news, Director Stephen J. Schlegel sold 9,750 shares of American Well stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $8.76, for a total transaction of $85,410.00. Following the transaction, the director owned 54,553 shares in the company, valued at approximately $477,884.28. The trade was a 15.16% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Dmitry Zamansky sold 8,460 shares of the company's stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $9.33, for a total transaction of $78,931.80. Following the sale, the insider directly owned 232,620 shares of the company's stock, valued at approximately $2,170,344.60. This trade represents a 3.51% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 29,225 shares of company stock valued at $268,623 over the last ninety days. Corporate insiders own 12.84% of the company's stock.

Institutional Investors Weigh In On American Well

Institutional investors and hedge funds have recently modified their holdings of the stock. Headlands Technologies LLC acquired a new position in American Well during the 2nd quarter worth approximately $39,000. Occudo Quantitative Strategies LP acquired a new position in American Well in the 4th quarter worth $74,000. NewEdge Advisors LLC purchased a new position in American Well in the 4th quarter valued at about $82,000. Prelude Capital Management LLC purchased a new position in American Well in the 3rd quarter valued at about $86,000. Finally, Engineers Gate Manager LP acquired a new stake in shares of American Well during the second quarter valued at about $101,000. Hedge funds and other institutional investors own 56.05% of the company's stock.

About American Well

American Well, operating under the trade name Amwell, is a Boston-based digital health company that develops and delivers telehealth solutions to healthcare providers, payers, employers and patients. Through its cloud-based platform, the company enables secure virtual visits, remote patient monitoring and integrated care coordination across a range of medical disciplines, including primary care, behavioral health, chronic disease management and urgent care.

The company's core offering, the Amwell Telehealth Platform, facilitates live video consultations, asynchronous messaging, e-prescribing and electronic health record integration.

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