Agilon Health CTO acquires shares, withholds some for tax obligations
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Agilon Health, Inc. (NYSE:AGL) recently disclosed a series of transactions involving their Chief Technology Officer, Venkatachaliah Girish, according to the latest SEC filings. Girish acquired a significant number of shares while also withholding some to cover tax obligations.
On March 14, 2024, Girish added 5,434 shares of Agilon Health’s common stock to his holdings. These shares were not purchased at a specific price, as they were part of a vested performance-based restricted stock unit (PSU) award, which was granted on April 14, 2021. The PSUs vested based on the company’s achievement of predetermined Revenue and Adjusted EBITDA goals over a three-year period from January 1, 2021, through December 31, 2023, with the total attainment reaching 100%.
In a related transaction, Girish withheld 1,883 shares of common stock, valued at $5.23 per share, to satisfy income tax withholding and remittance obligations associated with the net settlement of the PSUs. This withholding resulted in a total transaction value of $9,848 and is not considered a sale of shares.
Following these transactions, Girish’s direct ownership in the company increased, reflecting his vested interest in Agilon Health’s performance and continued growth. Investors often monitor such insider transactions as indicators of executives’ confidence in the company’s prospects and alignment with shareholder interests.
Agilon Health, headquartered in Austin, Texas, operates within the health services sector, providing a platform for physician enablement to drive better healthcare outcomes.
InvestingPro Insights
Amidst recent insider transactions at Agilon Health, Inc. (NYSE:AGL), investors are keenly observing the company’s financial health and market performance. Girish’s acquisition of shares coincides with an important phase for the company, as it navigates through challenging market conditions.
InvestingPro data reveals a significant revenue growth for Agilon Health, with the last twelve months as of Q4 2023 showing an 80.74% increase, indicating a robust expansion in their business operations. However, this growth contrasts with a low gross profit margin of only 1.61% in the same period, underscoring the company’s struggles to translate top-line growth into bottom-line results.
Furthermore, the market sentiment seems to reflect these challenges, with Agilon Health trading near its 52-week low and the stock experiencing a steep 79.78% decline over the past year. This is further evidenced by the 58.81% and 70.28% drops in the price total return over the last three and six months, respectively.
InvestingPro Tips for AGL highlight that management has been actively buying back shares, which could be a sign of confidence in the company’s intrinsic value. Additionally, Agilon Health holds more cash than debt, providing a cushion against financial stress and the potential for strategic investments or further share repurchases.
For investors seeking a deeper analysis, there are additional InvestingPro Tips available that could provide a more nuanced view of Agilon Health’s financial position and market performance. These insights can be found at InvestingPro. By using the coupon code PRONEWS24, readers can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of information to inform their investment decisions.
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