Is American Well Stock a Good Investment?
American Well Investment Advice | AMWL |
- Examine American Well's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research American Well's leadership team and their track record. Good management can help American Well navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Health Care Equipment & Supplies space and any emerging trends that could impact American Well's business and its evolving consumer preferences.
- Compare American Well's performance and market position to its competitors. Analyze how American Well is positioned in terms of product offerings, innovation, and market share.
- Check if American Well pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about American Well's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in American Well Corp stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if American Well Corp is a good investment.
Sell | Buy |
Strong Sell
Market Performance | OK | Details | |
Volatility | Relatively risky | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Actively responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Hold | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine American Well Stock
Researching American Well's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 49.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 0.44. Some equities with similar Price to Book (P/B) outperform the market in the long run. American Well Corp recorded a loss per share of 14.45. The entity had not issued any dividends in recent years. The firm had 1:20 split on the 11th of July 2024.
To determine if American Well is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding American Well's research are outlined below:
| American Well Corp had very high historical volatility over the last 90 days | |
| The company reported the previous year's revenue of 259.05 M. Net Loss for the year was (675.16 M) with profit before overhead, payroll, taxes, and interest of 116.77 M. | |
| American Well Corp currently holds about 581.61 M in cash with (148.34 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.11. | |
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American Well uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in American Well Corp. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to American Well's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 28th of February 2024 Upcoming Quarterly Report | View | |
| 1st of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 28th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact American Well's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises American Well's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2024-02-14 | 2023-12-31 | -0.2 | -0.17 | 0.03 | 15 | ||
2023-05-03 | 2023-03-31 | -0.21 | -0.24 | -0.03 | 14 | ||
2023-02-22 | 2022-12-31 | -0.25 | -0.22 | 0.03 | 12 | ||
2022-05-09 | 2022-03-31 | -0.23 | -0.26 | -0.03 | 13 | ||
2021-05-12 | 2021-03-31 | -0.19 | -0.16 | 0.03 | 15 | ||
2021-11-10 | 2021-09-30 | -0.24 | -0.2 | 0.04 | 16 | ||
2021-08-11 | 2021-06-30 | -0.19 | -0.15 | 0.04 | 21 | ||
2024-05-01 | 2024-03-31 | -0.19 | -0.25 | -0.06 | 31 |
Know American Well's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as American Well is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading American Well Corp backward and forwards among themselves. American Well's institutional investor refers to the entity that pools money to purchase American Well's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Geode Capital Management, Llc | 2024-09-30 | 147 K | Bank Of America Corp | 2024-06-30 | 126.3 K | Mariner Wealth Advisors Llc | 2024-06-30 | 79.7 K | Bridgeway Capital Management, Llc | 2024-09-30 | 69.4 K | State Street Corp | 2024-09-30 | 45.5 K | Marshall Wace Asset Management Ltd | 2024-09-30 | 43.2 K | Hightower Advisors, Llc | 2024-09-30 | 37.5 K | Trexquant Investment Lp | 2024-09-30 | 33.9 K | Amvescap Plc. | 2024-09-30 | 33 K | Blackrock Inc | 2024-06-30 | 6.8 M | Rima Management, Llc | 2024-09-30 | 1.3 M |
American Well's market capitalization trends
The company currently falls under 'Small-Cap' category with a current market capitalization of 139.56 M.Market Cap |
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American Well's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (1.44) | (1.37) | |
| Return On Capital Employed | (1.40) | (1.33) | |
| Return On Assets | (1.14) | (1.09) | |
| Return On Equity | (1.45) | (1.38) |
Determining American Well's profitability involves analyzing its financial statements and using various financial metrics to determine if American Well is a good buy. For example, gross profit margin measures American Well's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of American Well's profitability and make more informed investment decisions.
Evaluate American Well's management efficiency
American Well Corp has return on total asset (ROA) of (0.2542) % which means that it has lost $0.2542 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.5015) %, meaning that it created substantial loss on money invested by shareholders. American Well's management efficiency ratios could be used to measure how well American Well manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is expected to rise to -1.37 this year. Return On Capital Employed is expected to rise to -1.33 this year. At this time, American Well's Debt To Assets are quite stable compared to the past year. Asset Turnover is expected to rise to 0.46 this year, although the value of Non Currrent Assets Other will most likely fall to about 4.7 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 33.79 | 30.19 | |
| Tangible Book Value Per Share | 25.32 | 26.59 | |
| Enterprise Value Over EBITDA | (0.28) | (0.29) | |
| Price Book Value Ratio | 0.91 | 0.96 | |
| Enterprise Value Multiple | (0.28) | (0.29) | |
| Price Fair Value | 0.91 | 0.96 | |
| Enterprise Value | 63.3 M | 60.1 M |
Effective management at American Well has been a driving force behind its market achievements. We assess the correlation between management practices and financial success to determine the stock's value.
Beta 1.048 |
Basic technical analysis of American Stock
As of the 2nd of December, American Well shows the risk adjusted performance of 0.0836, and Mean Deviation of 2.54. American Well Corp technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Please confirm American Well Corp standard deviation, as well as the relationship between the maximum drawdown and expected short fall to decide if American Well Corp is priced correctly, providing market reflects its regular price of 9.57 per share. Given that American Well has jensen alpha of 0.1297, we suggest you to validate American Well Corp's prevailing market performance to make sure the company can sustain itself at a future point.American Well's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific American Well insiders, such as employees or executives, is commonly permitted as long as it does not rely on American Well's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases American Well insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
American Well's Outstanding Corporate Bonds
American Well issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. American Well Corp uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most American bonds can be classified according to their maturity, which is the date when American Well Corp has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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| US03040WAJ45 Corp BondUS03040WAJ45 | View |
Understand American Well's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing American Well's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0836 | |||
| Market Risk Adjusted Performance | 0.2125 | |||
| Mean Deviation | 2.54 | |||
| Semi Deviation | 3.08 | |||
| Downside Deviation | 3.36 | |||
| Coefficient Of Variation | 1009.61 | |||
| Standard Deviation | 3.64 | |||
| Variance | 13.26 | |||
| Information Ratio | 0.0613 | |||
| Jensen Alpha | 0.1297 | |||
| Total Risk Alpha | (0.26) | |||
| Sortino Ratio | 0.0664 | |||
| Treynor Ratio | 0.2025 | |||
| Maximum Drawdown | 18.59 | |||
| Value At Risk | (5.38) | |||
| Potential Upside | 5.91 | |||
| Downside Variance | 11.3 | |||
| Semi Variance | 9.47 | |||
| Expected Short fall | (2.75) | |||
| Skewness | 0.8902 | |||
| Kurtosis | 3.73 |
| Risk Adjusted Performance | 0.0836 | |||
| Market Risk Adjusted Performance | 0.2125 | |||
| Mean Deviation | 2.54 | |||
| Semi Deviation | 3.08 | |||
| Downside Deviation | 3.36 | |||
| Coefficient Of Variation | 1009.61 | |||
| Standard Deviation | 3.64 | |||
| Variance | 13.26 | |||
| Information Ratio | 0.0613 | |||
| Jensen Alpha | 0.1297 | |||
| Total Risk Alpha | (0.26) | |||
| Sortino Ratio | 0.0664 | |||
| Treynor Ratio | 0.2025 | |||
| Maximum Drawdown | 18.59 | |||
| Value At Risk | (5.38) | |||
| Potential Upside | 5.91 | |||
| Downside Variance | 11.3 | |||
| Semi Variance | 9.47 | |||
| Expected Short fall | (2.75) | |||
| Skewness | 0.8902 | |||
| Kurtosis | 3.73 |
Consider American Well's intraday indicators
American Well intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of American Well stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
American Well Corporate Filings
13A | 12th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
13A | 6th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
F4 | 5th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
| 4th of November 2024 Other Reports | ViewVerify |
American Stock media impact
Far too much social signal, news, headlines, and media speculation about American Well that are available to investors today. That information is available publicly through American media outlets and privately through word of mouth or via American internal channels. However, regardless of the origin, that massive amount of American data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of American Well news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of American Well relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to American Well's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive American Well alpha.
American Well Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards American Well can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
American Well Corporate Management
| Tim Conway | Chief Officer | Profile | |
| Paul McNeice | Vice Accounting | Profile | |
| Meredith Dixon | Senior Services | Profile | |
| Amber Howe | Chief People Officer | Profile | |
| MD MPH | CoCEO Pres | Profile |
Already Invested in American Well Corp?
The danger of trading American Well Corp is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of American Well is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than American Well. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile American Well Corp is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether American Well Corp is a strong investment it is important to analyze American Well's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact American Well's future performance. For an informed investment choice regarding American Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Well Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in housing. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
Is Health Care Equipment & Supplies space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Well. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Well listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (14.45) | Revenue Per Share 17.223 | Quarterly Revenue Growth (0.01) | Return On Assets (0.25) | Return On Equity (0.50) |
The market value of American Well Corp is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Well's value that differs from its market value or its book value, called intrinsic value, which is American Well's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Well's market value can be influenced by many factors that don't directly affect American Well's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between American Well's value and its price, as these two are different measures arrived at by various means. Investors typically determine if American Well is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Well's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.