Quashing Thoughts Of An Teladoc Health, Inc. (TDOC) Exodus

On 06 December, shares of Teladoc Health, Inc. (NYSE:TDOC) closed lower after a volatile session. The shares dropped -4 points or -6.69 percent at $55.81 with a heavy trade volume of 4.131 million shares. After opening the session at $56.56, the shares went as high as $57.25 and as low as $53.71, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $4.02 billion and now has 71.95 million shares outstanding. Teladoc Health, Inc. (TDOC) stock has lost -11.89 percent of market value in 21 trading days.

TDOC stock has a trailing 3-year beta of 0.95, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$2.07 a share in the trailing twelve months. The stock’s value has surged 60.14 percent year to date (YTD) against a rise of 70.15 percent in 12 month’s time. The company’s shares still trade -37.32 percent away from its 1-year high of $89.05 and 80.91 percent up from 52-week low of $30.85. The average consensus rating on the company is 1.8, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Teladoc Health, Inc. (TDOC) will probably climb 58.41 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $100-month high price target. This represents a whopping 79.18 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $93.5, which represents a return potential of 67.53 percent when compared to the closing price of the stock of $55.81 on Thursday, December 06. The lowest price target for the stock is $67 — slightly more than 20.05 percent from TDOC’s current share price.

History has shown that shares in Teladoc Health, Inc. have gone up on 8 different earnings reaction days and are predicted to add 0.07 percent when the company reports upcoming earnings. Investors will get their next glimpse of TDOC’s Q4 earnings on February 27. Analysts are forecasting revenue to climb 55.7 percent to $120M in the fiscal fourth quarter, while earnings are seen soaring by nearly -53.95 percent to -$0.35 per share. It earned -$0.34 per share, better than the -$0.36, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $111M, better than the $110M analysts expected. Earnings are estimated to increase by -20.7 percent this year, 27.5 percent next year and continue to increase by 20 percent annually for the next 5 years.

Let’s take a look at some insider activity at Teladoc Health, Inc. (NYSE:TDOC) and see the pattern. The earliest insider trade took place on 12/03/2018. Turitz Andrew parted with a total of 8.2 thousand shares of company at average share price of $64.14. The total for the sales was set at $526.08 thousand. After this transaction, the SVP – Business Development account balance stood at 1.18 thousand shares. The stock lost -12.99 percent since that insider sale. On 11/19/2018, Gorevic Jason N, CEO, sold 35 thousand shares at a price per share of $54.8. This removed 1.92 million shares from the insider’s fortune and the stock saw a 1.84 percent rally in value since the news became public. This transaction left 506.18 thousand shares in the CEO account.

On 11/15/2018, Chief Medical Officer Levy Lewis performed a sale transaction worth $73.5 thousand. This sale at $57.24 each has eliminated 1.28 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -2.5 percent decrease since the transaction was reported. The insider now is left with 0 thousand shares remaining in the account. Vandervoort Adam C, who performs the Chief Legal Officer, Secretary job, sold 5.55 thousand shares for $372.78 thousand. The disposal occurred on 11/08/2018 was priced at $67.18 per share. The share price plunged -16.92 percent since the reporting date. Vandervoort Adam C now left with a stake of 0.2 thousand TDOC stock worth $11.16 thousand after the insider selling.

The stock is currently hovering around the first support level of $53.93. Below this, the next support is placed in the zone of $52.05. Till the time, the TDOC stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 41.01 on daily chart, which may remain a cause for concern. If the price breaks below $52.05 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $57.47 mark may result into a pull-back move towards $59.13 level.

Further, it is sporting a 10.79 on the Price-to-Sales ratio. Compare this with the industry average P/S of 15.56. 70.1 percent is the gross profit margin for Teladoc Health, Inc. and operating margin sits at -24.2 percent. Along with this, the net profit margin is -31.3 percent.