Wells Fargo & Company Issues Positive Forecast for American Well (NYSE:AMWL) Stock Price

Key Points

• Wells Fargo raised its price target on American Well (AMWL) from $9 to $16 and kept an overweight rating, implying about 28% upside from the prior close.
• Other analysts have also been adjusting expectations, but the overall consensus remains cautious: AMWL currently carries an average Hold rating with an average price target of $8.60.
• The stock has surged recently, trading near its 52-week high of $12.51 after the company beat quarterly earnings and revenue estimates, though it still faces negative margins and ongoing losses.

American Well (NYSE:AMWL - Get Free Report) had its price target boosted by research analysts at Wells Fargo & Company from $9.00 to $16.00 in a research note issued on Friday,Benzinga reports. The brokerage currently has an "overweight" rating on the stock. Wells Fargo & Company's target price would suggest a potential upside of 28.10% from the company's previous close.

Several other analysts also recently commented on AMWL. TD Cowen lifted their target price on shares of American Well from $5.00 to $8.00 and gave the stock a "hold" rating in a report on Wednesday, May 6th. Morgan Stanley raised their price objective on shares of American Well from $6.00 to $6.50 and gave the stock an "equal weight" rating in a research report on Wednesday, May 6th. Wall Street Zen upgraded American Well from a "sell" rating to a "hold" rating in a report on Sunday, March 22nd. Finally, Truist Financial set a $7.50 target price on American Well in a research report on Monday, June 8th. One investment analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, American Well presently has an average rating of "Hold" and an average price target of $8.60.

American Well Price Performance

American Well stock traded up $1.54 during mid-day trading on Friday, hitting $12.49. 85,976 shares of the company's stock traded hands, compared to its average volume of 91,442. The firm has a 50 day simple moving average of $8.80 and a two-hundred day simple moving average of $6.58. American Well has a fifty-two week low of $3.71 and a fifty-two week high of $12.51. The stock has a market cap of $206.71 million, a price-to-earnings ratio of -2.33 and a beta of 1.69.

American Well (NYSE:AMWL - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The company reported ($0.66) EPS for the quarter, beating the consensus estimate of ($0.77) by $0.11. The firm had revenue of $54.88 million for the quarter, compared to the consensus estimate of $51.54 million. American Well had a negative net margin of 37.02% and a negative return on equity of 32.11%. On average, research analysts anticipate that American Well will post -2.68 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Dmitry Zamansky sold 8,460 shares of the firm's stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $9.33, for a total transaction of $78,931.80. Following the transaction, 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. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Phyllis Gotlib sold 6,677 shares of American Well stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $9.33, for a total transaction of $62,296.41. Following the completion of the sale, the insider owned 152,754 shares of the company's stock, valued at approximately $1,425,194.82. The trade was a 4.19% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 29,225 shares of company stock worth $268,623 in the last quarter. 12.84% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On American Well

Large investors have recently added to or reduced their stakes in the stock. JPMorgan Chase & Co. increased its stake in American Well by 16.5% during the 2nd quarter. JPMorgan Chase & Co. now owns 14,720 shares of the company's stock worth $131,000 after acquiring an additional 2,081 shares during the period. Geode Capital Management LLC raised its holdings in American Well by 2.3% in the 4th quarter. Geode Capital Management LLC now owns 152,742 shares of the company's stock valued at $750,000 after acquiring an additional 3,450 shares in the last quarter. State Street Corp lifted its position in shares of American Well by 7.8% during the 4th quarter. State Street Corp now owns 52,299 shares of the company's stock valued at $257,000 after acquiring an additional 3,800 shares during the period. Headlands Technologies LLC bought a new stake in shares of American Well during the 2nd quarter valued at $39,000. Finally, Two Sigma Investments LP grew its holdings in shares of American Well by 22.6% during the 3rd quarter. Two Sigma Investments LP now owns 46,329 shares of the company's stock worth $285,000 after purchasing an additional 8,553 shares in the last quarter. Institutional investors and hedge funds own 56.05% of the company's stock.

American Well Company Profile

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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