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Teladoc Health (NYSE: TDOC) stock opinion: High insider trading confirms decline.

Teladoc Health (NYSE: TDOC) stock opinion: High insider trading confirms decline.

It is often said that the market takes a ladder to go up and an elevator to go down, but in some cases stocks can rise in both directions.

This applies to Teladoc Health. Over the past two years, it has grown over 250% and then relinquished all its revenue and returned to the starting line.

Cathie Wood’s average has dropped

After declining by more than 50% in 2021, Teladoc Health attracted the attention of 3 ARK Invest ETFs which added to its position. ARK Innovation ETF (ARKK) added over 53 thousand shares, ARK Genomic Revolution ETF (ARKG) bought 33 thousand and ARK Fintech Innovation EFT (ARKF) bought 14.5 thousand.

To date, the first week of 2022 has not reversed a negative trend, as 6 actively managed ETFs Cathie Wood is trading around the 52-week low, as the flagship of the Innovation Fund has fallen by 15% since the beginning of the year.

Insider trading on Teladoc Health last year

Over the past year, we can see that the most important insider sale has been by the CEO & amp; The CEO, Jason Gorevic, for $ 3.7 million worth of shares, valued at approximately $ 183 per share. If insider trading is negative, it is even worse if shares are sold at a lower price. It is gratifying to see that this sale was made at a price well above the current share price, 82.18 dollars. It is therefore difficult to draw a strong conclusion.

Last year, insiders Teladoc Health did not buy shares in the company. The chart below shows insider trading (companies and individuals) over the past year.

Insiders at Teladoc Health recently sold shares.

The last quarter was marked by significant insider sales of shares in Teladoc Health. HR Manager Arnnon Geshuri sold a total of $ 425,000 worth of stock during this period, and we did not record any purchases.

In light of this, it is difficult to say that all insiders think that shares are a good buy.

Insider assets

Another way to test consistency between company executives and other shareholders is to look at how many shares they own. In general, the more shares that insiders own, the more likely it is that insiders will have an incentive to build the company over the long term. It is good to see that Teladoc Health’s insiders own 1.0% of the company, which is approximately 134 million US dollars. This type of significant insider participation generally increases the likelihood that the company will be run in the best interests of all shareholders.

What do Teladoc Health insider trading show?

An insider recently sold shares in Teladoc Health but did not buy any. And there were no purchases to comfort us last year. Despite the fact that insiders own a lot of the company’s shares (which is good), our analysis of their trading does not give us comfort about the company.

However, the biggest concern and probably the driving force behind the decline is the fact that revenue growth is slowing. Currently, the expected growth for FY 2022 is in the range of 25-30%, which is far behind 2020 or 2021.

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