Why Is TDOC Up Today?

By Ken Smith • Thursday, November 10 15:30 • Permanent Link

Rocketing to a price of $30.97 during today's afternoon trading session, shares of Teladoc Health are still -5.92% below their average target price of $32.92. Analysts are giving TDOC an average rating of hold and target prices ranging from $24 to $45 dollars per share.

The market sentiment on Teladoc Health seems pessimistic because the proportion of shorted shares in its float is quite high at 22.1%. Each short position represents an investor's expectation and hope that the stock's price will reverse course and start declining.

Another way to gauge the sentiment on Teladoc Health is to look at the percentage of institutions that are invested in the stock. In this case, 84.5% of the shares are held by pension, mutual, and hedge funds, which shows that these institutions probably have strong confidence in the stock.

If institutions are invested in a particular stock, it shows in most cases that they have performed quality research and concluded that it is a good investment. In some cases, however, increases in institutional ownership could be a sign of a takeover attempt or proxy fight, which can actually injure share prices. Also, institutions are not infallible, and can certainly make miscalculations -- often with spectacular results.

In conclusion, we see mixed market sentiment regarding Teladoc Health because of its an analyst consensus of some upside potential, a hold rating,, an unusually large proportion if its shares sold short and, and a significant number of institutional investors. At Market Inference, we believe that any investment decision should be preceded by an in-depth analysis of the company's fundamental values and a comparison with similar stocks.

Here's a snapshot of some important facts to keep in mind about TDOC:

The stock has trailing 12 month earnings per share (Eps) of $-43.41
Teladoc Health has a trailing 12 month Price to Earnings (P/E) ratio of -0.7 compared to the S&P 500 average of 15.97
The company has a Price to Book (P/B) ratio of 0.8 in contrast to the S&P 500's average ratio of 2.95
Teladoc Health is a Healthcare company, and the sector average P/E and P/B ratios are 13.21 and 4.07 respectively

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The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.