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Teladoc Health, Inc. (NYSE:TDOC), the telehealth provider with a market capitalization of $1.47 billion, saw its Chief Financial Officer Mala Murthy recently execute stock transactions involving the company’s common stock. According to InvestingPro analysis, the stock is currently trading below its Fair Value, despite facing challenging market conditions with a 46.5% decline over the past year. The transactions were detailed in a Form 4 filed with the Securities and Exchange Commission.
On March 20, Murthy sold 20,586 shares of Teladoc Health common stock at an average price of $8.424 per share, amounting to a total sale of approximately $173,416. The sale was conducted to cover tax withholding obligations related to the vesting of restricted stock unit awards.
Prior to this sale, on March 19, Murthy acquired 36,933 shares through the conversion of restricted stock units to common stock. These units convert on a one-for-one basis, with no cash changing hands during this transaction.
Following these transactions, Murthy’s direct ownership of Teladoc Health common stock stands at 116,309 shares.
In other recent news, Teladoc Health Inc. reported its fourth-quarter 2024 earnings, showing a revenue of $640.5 million, slightly surpassing expectations but with an earnings per share (EPS) of -0.28, missing the forecasted -0.23. The company’s full-year revenue for 2024 was $2.6 billion, marking a 1% decrease from the previous year. Teladoc has also formed a strategic partnership with Gifthealth, a pharmacy partner of Eli Lilly (NYSE:LLY)’s LillyDirect program, to enhance its Comprehensive Weight Care Program by providing access to the medication Zepbound (tirzepatide) for members without insurance coverage for obesity treatments.
Analysts from Truist Securities and Stifel have maintained their Hold ratings on Teladoc shares, with price targets of $10 and $9, respectively, following these developments. Truist Securities highlighted the potential marketability boost from the partnership with Gifthealth, while Stifel noted the company’s earnings miss and guidance that leans towards the latter part of the year. Needham also reiterated a Hold rating after Teladoc’s mixed fourth-quarter results, citing challenges such as the loss of a large client and currency exchange headwinds.
Teladoc’s BetterHelp division saw a sequential increase in average paying users during the fourth quarter, though the company continues to focus on stabilizing this segment. Despite the efforts to balance growth and profitability, Needham expressed concerns over uncertainties regarding Teladoc’s future performance. These recent developments underscore the company’s ongoing efforts to navigate market challenges and explore growth opportunities in weight management and chronic care programs.
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