BTIG analyst David Larsen has maintained their neutral stance on AMWL stock, giving a Hold rating today.
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David Larsen has given his Hold rating due to a combination of factors that reflect both positive developments and ongoing challenges for American Well. The company’s focus on cost reductions and margin improvements is commendable, as they are on track to achieve break-even EBITDA by the end of 2026. This is supported by aggressive cost-cutting measures, including significant reductions in workforce and expenses across various departments.
Despite these efforts, the company’s revenue has seen a year-over-year decline, primarily due to the loss of contributions from Leidos and the divestiture of APC. While subscription revenue has shown growth, the overall revenue decline poses a concern. Additionally, the company is evolving into a comprehensive healthcare platform, which is promising, but the transformation is still underway. These mixed signals contribute to the Hold rating, as the potential for growth is balanced by the current financial challenges.
In another report released today, TD Cowen also maintained a Hold rating on the stock with a $7.00 price target.
Based on the recent corporate insider activity of 41 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AMWL in relation to earlier this year.