Phreesia, Inc. (NYSE:PHR) director Mark Douglas Smith has completed a sale of 7,000 shares of company stock on July 18, 2024, according to a recent Form 4 filing with the Securities and Exchange Commission. The transaction was executed at an average price of $25.00 per share, resulting in a total sale amount of $175,000.
In addition to the sale, the filing revealed that Smith also acquired 7,000 shares of Phreesia's common stock on the same day at $4.71 per share, totaling $32,970. Notably, these transactions were conducted under a pre-arranged trading plan, known as Rule 10b5-1, which was adopted on December 22, 2023. Such plans allow company insiders to set up a predetermined schedule for buying and selling stocks at a time when they are not in possession of material non-public information.
Following the sale, Smith's holdings in Phreesia decreased to 30,653 shares of common stock. On the other hand, the exercise of stock options on the same day increased his total direct ownership to 58,193 shares, indicating active participation in the company's equity compensation programs. The options exercised were fully vested and exercisable as of the reporting date.
Phreesia, Inc., headquartered in Wilmington, Delaware, specializes in business services and is recognized for its innovative healthcare platform that helps medical organizations with patient intake management and engagement. The company's stock is publicly traded under the ticker symbol "PHR" on the New York Stock Exchange.
Investors and market watchers often keep a close eye on insider transactions as they can provide insights into executives' perspectives on the company's current valuation and future prospects. The transactions by Smith are the latest insider activity reported for Phreesia, Inc.
In other recent news, Phreesia, Inc. has reported significant strides in its financial performance, with a robust 21% increase in revenue reaching $101.2 million and a positive adjusted EBITDA of $4.1 million. Despite these positive developments, the company revised its revenue guidance downward by $8 million due to the hastened conclusion of a clearinghouse partnership. Analysts from DA Davidson, JPMorgan, and RBC Capital have been closely following the company's progress. DA Davidson reaffirmed a Buy rating on Phreesia, highlighting the company's growth potential and lower balance sheet risk. JPMorgan adjusted its price target on Phreesia shares to $27, maintaining an 'Overweight' rating, while RBC Capital held steady with a 'Sector Perform' rating and a price target of $23. In other company news, Phreesia, Inc.'s directors were recently elected and the appointment of KPMG LLP as the independent registered public accounting firm for the fiscal year ending January 31, 2025, was ratified by stockholders. These are recent developments in the company's pursuit of profitability and growth.
InvestingPro Insights
As Phreesia, Inc. (NYSE:PHR) continues to navigate the market, the company's recent insider transactions have caught the attention of investors. To provide a broader investment context, it's important to consider some key financial metrics and analyst insights that could influence the perception of Phreesia's stock value.
According to InvestingPro data, Phreesia has a market capitalization of $1.36 billion and has experienced a notable revenue growth of 23.98% over the last twelve months as of Q1 2025. This growth is underscored by a solid gross profit margin of 66.0%, indicating the company's ability to maintain profitability at the operational level.
However, the company's financial health is not without its challenges. Phreesia's P/E ratio stands at -10.92, reflecting investor concerns about the company's current earnings performance. Additionally, the company has been operating with a moderate level of debt and has not been profitable over the last twelve months, as evidenced by an operating income margin of -30.32%.
Despite these challenges, Phreesia has demonstrated a strong return over the last month, with a 13.19% price total return, which may appeal to short-term investors. This is complemented by InvestingPro Tips, which reveal that 6 analysts have revised their earnings upwards for the upcoming period, suggesting a potential shift in the company's future financial trajectory. However, analysts do not anticipate the company will be profitable this year, and it should be noted that Phreesia does not pay dividends to shareholders.
For investors seeking a deeper analysis and additional insights, they can find more InvestingPro Tips on the platform. For example, there are additional tips available for Phreesia, which can be accessed through the dedicated link: https://www.investing.com/pro/PHR. Moreover, for those looking to enhance their investment strategies, using the coupon code PRONEWS24 can secure up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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