American Well (NYSE:AMWL) Downgraded to Sell Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded American Well to a "sell", joining recent price-target cuts from Morgan Stanley and Stifel; the analyst consensus still averages a "Hold" with an average price target of $7.42 (1 Buy, 6 Hold, 1 Sell).
• Company fundamentals remain weak: market cap about $93.8M, negative net margin (~-38%) and ROE (~-35%), and an EPS of -$1.52 for the latest quarter (revenue $55.3M), while the stock trades near $5.67 with a 52-week range of $3.71–$9.15.

American Well (NYSE:AMWL - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued on Saturday.

AMWL has been the topic of several other reports. Morgan Stanley lowered their target price on shares of American Well from $10.50 to $6.00 and set an "equal weight" rating on the stock in a report on Thursday, December 18th. Weiss Ratings reiterated a "sell (e+)" rating on shares of American Well in a research note on Wednesday, January 21st. Finally, Stifel Nicolaus reduced their price target on American Well from $6.00 to $5.00 and set a "hold" rating on the stock in a research report on Friday, February 13th. One analyst has rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $7.42.

American Well Stock Performance

AMWL opened at $5.67 on Friday. The stock has a fifty day moving average of $5.05 and a 200-day moving average of $5.22. The company has a market capitalization of $93.76 million, a P/E ratio of -0.95 and a beta of 1.34. American Well has a fifty-two week low of $3.71 and a fifty-two week high of $9.15.

American Well (NYSE:AMWL - Get Free Report) last released its quarterly earnings results on Thursday, February 12th. The company reported ($1.52) EPS for the quarter, beating the consensus estimate of ($1.59) by $0.07. American Well had a negative net margin of 38.38% and a negative return on equity of 35.33%. The business had revenue of $55.31 million for the quarter, compared to the consensus estimate of $52.71 million. On average, equities research analysts predict that American Well will post -9.34 earnings per share for the current fiscal year.

Insider Activity at American Well

In other news, insider Dmitry Zamansky sold 6,243 shares of the company's stock in a transaction that occurred on Friday, January 2nd. The shares were sold at an average price of $4.85, for a total transaction of $30,278.55. Following the completion of the sale, the insider owned 191,468 shares of the company's stock, valued at approximately $928,619.80. This represents a 3.16% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. In the last ninety days, insiders have sold 10,946 shares of company stock valued at $53,002. 11.82% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Senvest Management LLC raised its position in American Well by 0.3% during the second quarter. Senvest Management LLC now owns 1,312,852 shares of the company's stock valued at $11,671,000 after purchasing an additional 4,497 shares in the last quarter. Vanguard Group Inc. increased its stake in shares of American Well by 2.5% in the 3rd quarter. Vanguard Group Inc. now owns 650,102 shares of the company's stock valued at $3,998,000 after purchasing an additional 15,797 shares during the last quarter. Rock Point Advisors LLC increased its stake in shares of American Well by 49.3% in the 3rd quarter. Rock Point Advisors LLC now owns 259,171 shares of the company's stock valued at $1,594,000 after purchasing an additional 85,581 shares during the last quarter. Geode Capital Management LLC raised its holdings in shares of American Well by 2.3% during the 4th quarter. Geode Capital Management LLC now owns 152,742 shares of the company's stock worth $750,000 after buying an additional 3,450 shares in the last quarter. Finally, Squarepoint Ops LLC raised its holdings in shares of American Well by 74.5% during the 4th quarter. Squarepoint Ops LLC now owns 115,061 shares of the company's stock worth $565,000 after buying an additional 49,135 shares in the last quarter. 56.05% of the stock is owned by institutional investors.

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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