Stephen H. Barnes, the Chief Financial Officer of Accolade, Inc. (NASDAQ:ACCD), recently sold shares of the company. According to a Form 4 filing with the Securities and Exchange Commission, Barnes sold 154 shares of common stock on January 17, 2025, at a price of $6.859 per share, totaling approximately $1,056. The transaction comes as Accolade's stock shows strong momentum, with a nearly 100% price return over the past six months. According to InvestingPro analysis, the stock currently appears overvalued relative to its Fair Value. This transaction was undertaken to cover tax withholding obligations related to the vesting of restricted stock units (RSUs), as noted in the filing.
Additionally, Barnes acquired 415 shares of common stock on January 16, 2025, through the conversion of RSUs, which did not involve any monetary exchange. Following these transactions, Barnes holds a total of 222,244 shares in Accolade.
In other recent news, Accolade Inc . experienced significant developments. The company's revenue surpassed expectations, reaching a total of $106.4 million, and it reaffirmed its fiscal year 2025 revenue guidance between $460 million and $475 million. However, Wells Fargo (NYSE:WFC) suggested potential revenue delays into FY26 due to extended contract negotiations.
Accolade also announced a major merger with Transcarent, which is expected to enhance the company's market position by combining Accolade's health solutions with Transcarent's WayFinding solutions, thereby offering a broader range of services to over 1,400 employer and payer clients.
In the wake of these developments, analyst ratings for Accolade were adjusted. Stifel downgraded Accolade stock from Buy to Hold and revised the price target downward to $7.03. In contrast, Truist Securities maintained a Buy rating on Accolade stock with a price target of $7.50.
Furthermore, following the acquisition by Transcarent, the equity value of the transaction suggests approximately 88 million shares are involved, which is 8 million more than Accolade's last reported diluted share count. This indicates that some future stock compensation and restricted stock units were likely liquidated as part of the deal. Analysts at Raymond (NSE:RYMD) James raised the question of how much of the projected annual stock compensation, estimated at $50 million, will be capitalized and how much will continue as cash compensation after the acquisition is completed.
These are the recent developments in Accolade's business landscape.
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