Needham analyst Ryan MacDonald has reiterated their neutral stance on AMWL stock, giving a Hold rating yesterday.
Ryan MacDonald has given his Hold rating due to a combination of factors surrounding American Well’s recent performance and future outlook. The company’s first-quarter results exceeded expectations, which is a positive indicator. However, there are concerns regarding delays in the Department of Health and Human Services (DHA) contract, which have shifted some project timelines from the second to the third quarter, affecting revenue recognition until the second half of 2025.
Despite these delays, American Well has completed its implementation work and is awaiting final approval for a broader deployment. Management remains optimistic about achieving positive free cash flow by fiscal year 2026, contingent on extending the DHA contract. Given the uncertainties introduced by the contract delays, MacDonald has decided to maintain a cautious stance, opting for a Hold rating until more clarity is achieved.
In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $12.00 price target.
Based on the recent corporate insider activity of 59 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.