Health Catalyst , Inc. (NASDAQ:) reported that Chief People Officer Linda Llewelyn has sold 1,290 shares of the company’s common stock at a price of $6.3725 per share. The transaction, which took place on June 17, 2024, resulted in a total sale amount of over $8,220.
The sale was conducted according to a pre-arranged trading plan dated May 23, 2023, which complies with Rule 10b5-1. This rule allows company insiders to set up a trading plan for selling stocks they own in advance, which can then be executed at a later date, even if they have access to non-public information at the time of the sale.
Following the transaction, Llewelyn’s remaining holdings in Health Catalyst amount to 121,154 shares of common stock. The company, which specializes in computer programming, data processing, and other related services, is incorporated in Delaware with headquarters in South Jordan, Utah.
Investors often monitor the buying and selling activity of company executives as it can provide insights into their perspective on the company’s current valuation and future prospects. However, transactions under Rule 10b5-1 are planned ahead of time and may not always reflect the executive’s real-time view of the company’s financial situation or outlook.
The filing did not include any derivative securities transactions by the executive. Health Catalyst has not made any further comments on the transaction.
In other recent news, Health Catalyst reported a Q1 2024 total revenue of $74.7 million and an adjusted EBITDA of $3.4 million, marking a year-over-year revenue increase of 1%. These developments were shared during the company’s annual stockholders’ meeting, where all presented proposals were approved. This included the re-election of three Class II directors and the ratification of Ernst & Young LLP as the company’s independent registered public accounting firm for the fiscal year ending December 31, 2024.
Also noteworthy is the approval of the compensation for the company’s executive officers. The recent financial results surpass the midpoint of Health Catalyst’s guidance, and the company ended Q1 with a robust cash position of $327.8 million. Health Catalyst is actively evaluating potential acquisitions and has expanded its partnership with Saudi German Health to improve health outcomes in the United Arab Emirates.
Analysts have noted a slight decrease in adjusted gross margin and challenges faced by clients such as Steward Health. However, they anticipate strong demand for the Health Catalyst Ignite platform and an increase in the company’s full portfolio as the end market improves. These are among the recent developments for the company.
InvestingPro Insights
In light of the recent insider sale at Health Catalyst, Inc. (NASDAQ:HCAT), investors might be considering the broader financial context of the company. According to InvestingPro data, Health Catalyst currently has a market capitalization of $357.75 million and, despite a challenging period, analysts are predicting a brighter future. Notably, the company holds more cash than debt on its balance sheet, which is a reassuring sign for investors concerned about financial stability. Additionally, Health Catalyst’s liquid assets exceed its short-term obligations, indicating a strong liquidity position.
While the company was not profitable over the last twelve months, with a negative P/E ratio of -3.26, there is an optimistic outlook for the current year. Analysts predict that Health Catalyst will become profitable this year, which could signal a turning point for the company’s financial performance. However, it’s important to note that 7 analysts have revised their earnings expectations downwards for the upcoming period, which may suggest that challenges still lie ahead.
For those interested in a deeper analysis, there are more InvestingPro Tips available, including insights into the company’s revenue growth and operational efficiency. With a revenue growth of 5.24% over the last twelve months as of Q1 2024, the company is showing signs of modest expansion. To get a comprehensive view of Health Catalyst’s financial health and to access additional expert tips, investors can visit https://www.investing.com/pro/HCAT. Remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking the full potential of InvestingPro’s analysis.
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