Stephen H. Barnes, chief financial officer of Accolade, Inc. (NASDAQ:), recently sold shares of the company. According to a Form 4 filed 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, for a total of approximately $1,056. The transaction comes as Accolade’s stock shows strong momentum, returning nearly 100% over the past six months. According to InvestPro According to this analysis, the stock currently appears overvalued compared to its fair value. This transaction was undertaken to cover withholding tax obligations related to the vesting of restricted stock units (RSUs), as disclosed 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 Accolade shares.
In other recent news, Accolade Inc. . experienced significant developments. The company’s revenue exceeded expectations, reaching a total of $106.4 million, and it reaffirmed its fiscal 2025 revenue guidance of between $460 million and $475 million. However, Wells Fargo (NYSE:) suggested potential revenue delays in FY26 due to extended contract negotiations.
Accolade also announced a major merger with Transcarent, which is expected to strengthen the company’s market position by combining Accolade’s healthcare solutions with Transcarent’s WayFinding solutions, providing a broader range of services to more than 1 400 employer and payer clients.
As a result of these developments, analyst ratings for Accolade have been 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 net value of the transaction suggests that approximately 88 million shares are involved, which is 8 million more than the last diluted share count announced by Accolade. This indicates that some future stock compensation and restricted stock units were likely liquidated as part of the transaction. Analysts at Raymonde (NSE:) James raised the question of how much of the projected annual equity compensation, estimated at $50 million, will be capitalized and how much will continue as cash compensation once the acquisition is complete.
These are the recent developments in the Accolade business landscape.
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