Phreesia, Inc. (NYSE:PHR) executive David Linetsky, who serves as the company's Senior Vice President of Life Sciences, recently sold a total of $2,360 worth of company stock. The transactions were carried out over two consecutive days, with shares sold at prices ranging from $24.0866 to $24.7651.
The sales, which were reported in a recent filing, were executed under the company's mandatory sell-to-cover policy. This policy is designed to cover tax withholding obligations that arise in connection with the settlement of restricted stock units (RSUs). According to the filing, the shares sold were held indirectly by Linetsky's spouse.
On September 17, 2024, Linetsky disposed of 36 shares at $24.7651 per share. The following day, an additional 61 shares were sold at a price of $24.0866 each. Following these transactions, the executive's indirectly held shares amounted to 8,995, while the direct holdings were not affected and remained at 203,318 shares of common stock.
The filing also included a note clarifying that the shares were sold as part of non-discretionary transactions, emphasizing that they were not subject to the executive's personal investment decision but rather a consequence of the company's policy on tax obligations for RSUs.
Investors and followers of Phreesia's market activity often pay close attention to insider transactions as they can provide insights into executives' perspectives on the company's current valuation and future prospects. However, in this case, the sales appear to be routine and mandated by corporate policy rather than driven by discretionary trading decisions.
In other recent news, Phreesia's second quarter revenue showed a 19% year-over-year increase, slightly surpassing expectations. The healthcare software company also reported a positive EBITDA of $7 million, beating the consensus estimate of $4 million. Financial services firm Baird increased its price target for Phreesia to $34.00, maintaining an Outperform rating, while Truist Securities raised its price target to $31.00 due to revised expectations for the company's financial performance in Fiscal Year 2026.
Piper Sandler reiterated its Overweight rating on Phreesia shares with a consistent price target of $30.00, expressing a positive outlook on the company's financial performance. Canaccord Genuity maintained a Buy rating for Phreesia with a steady price target of $34.00, highlighting the company's operational efficiency and focus on long-term profitability.
Meanwhile, Needham reaffirmed a Buy rating and a price target of $29.00 for Phreesia, projecting a potential double in the adjusted EBITDA margin year over year. These recent developments reflect the various analyst firms' confidence in Phreesia's financial trajectory and market performance.
InvestingPro Insights
Amidst the recent insider transactions at Phreesia, Inc. (NYSE:PHR), investors are evaluating the company's financial health and growth prospects. According to InvestingPro, analysts have recently revised their earnings upwards for the upcoming period, suggesting an optimistic outlook on the company's performance.
Despite this positive sentiment, analysts do not expect Phreesia to be profitable this year, as indicated by the company's negative P/E ratio of -13.49 and adjusted P/E ratio for the last twelve months as of Q2 2025 standing at -14.4. This aligns with the company's reported operating income margin of -23.99% for the same period, underscoring the challenges it faces in reaching profitability.
Nonetheless, Phreesia has shown strong revenue growth, with a 22.1% increase over the last twelve months as of Q2 2025 and an 18.97% quarterly revenue growth in Q2 2025. This growth trajectory, combined with a significant gross profit margin of 66.78%, may provide some reassurance to investors about the company's ability to manage its finances and potentially turn a profit in the future.
InvestingPro Tips further reveal that Phreesia operates with a moderate level of debt and has experienced a strong return over the last three months, with a 23.33% price total return. However, it is important to note that the company does not pay a dividend to shareholders, which might influence the investment strategy of income-focused investors.
For those interested in a deeper analysis, InvestingPro offers additional tips on Phreesia, which can be found at https://www.investing.com/pro/PHR. These insights could provide valuable context for interpreting the recent insider stock sales and assessing the company's future potential.
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