NEW YORK - Amwell (NYSE: AMWL), a prominent healthcare software as a service provider, has been notified by the New York Stock Exchange (NYSE) of its non-compliance with the exchange's minimum price criteria. On April 2, 2024, the company was informed that the average closing price of its Class A common stock had fallen below $1 per share over a consecutive 30 trading-day period. This notice, however, does not immediately affect the listing of Amwell's stock.
The NYSE rules provide Amwell with a six-month period to address the issue and regain compliance. The company has indicated its intention to remedy the deficiency, which may include a reverse stock split pending board and stockholder approval at the upcoming annual meeting in 2024.
During this six-month cure period, Amwell's Class A common stock will continue to be listed and traded on the NYSE, provided it meets other continued listing standards set by the exchange.
Amwell's business operations and SEC reporting requirements remain unaffected by this notice. The company is known for its hybrid care enablement platform, which facilitates digital health services across a range of care needs. Amwell's platform is utilized by numerous health plans and health systems, representing over 100 million covered lives.
The information in this article is based on a press release statement from Amwell.
InvestingPro Insights
Amwell's current financial position and stock performance provide critical context to the recent NYSE non-compliance notification. According to InvestingPro data, Amwell holds a market capitalization of $234.29 million, underscoring the company's scale in the healthcare software as a service industry. Despite the challenges, one of the key InvestingPro Tips notes that Amwell holds more cash than debt on its balance sheet, which could be a positive sign for investors concerned about the company's financial health.
Another relevant InvestingPro Tip suggests that Amwell's stock is currently in oversold territory based on the Relative Strength Index (RSI), indicating that the stock price may be undervalued and could potentially rebound. This is particularly noteworthy for investors monitoring Amwell's efforts to regain compliance with the NYSE's minimum price criteria.
InvestingPro data also reveals a Price/Book ratio for the last twelve months as of Q4 2023 at 0.5, suggesting that the stock may be undervalued relative to the company's book value. However, the same data set indicates a negative revenue growth of 6.55% for the same period, reflecting the challenges that Amwell faces in a competitive market.
For investors seeking a more comprehensive analysis, there are additional InvestingPro Tips available, offering deeper insights into Amwell's performance and prospects. Interested readers can access these tips by visiting https://www.investing.com/pro/AMWL, and can take advantage of an exclusive offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.