Teladoc Health, Inc.'s (NYSE:TDOC)) market cap declines to US$11b but insiders who sold US$1.8m stock were able to hedge their losses

Simply Wall St
March 27, 2022
Source: Shutterstock

Insiders at Teladoc Health, Inc. (NYSE:TDOC) sold US$1.8m worth of stock at an average price of US$125 a share over the past year, making the most of their investment. The company's market valuation decreased by US$361m after the stock price dropped 3.3% over the past week, but insiders were spared from painful losses.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Teladoc Health

The Last 12 Months Of Insider Transactions At Teladoc Health

In the last twelve months, the biggest single sale by an insider was when the Chief Human Resources Officer, Arnnon Geshuri, sold US$580k worth of shares at a price of US$143 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$66.71. So it may not shed much light on insider confidence at current levels. Arnnon Geshuri was the only individual insider to sell shares in the last twelve months.

Arnnon Geshuri sold a total of 14.29k shares over the year at an average price of US$125. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NYSE:TDOC Insider Trading Volume March 27th 2022

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Teladoc Health Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at Teladoc Health. Specifically, Chief Human Resources Officer Arnnon Geshuri ditched US$204k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Teladoc Health insiders own 1.1% of the company, worth about US$117m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Teladoc Health Insider Transactions Indicate?

An insider sold Teladoc Health shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 4 warning signs for Teladoc Health and we suggest you have a look.

Of course Teladoc Health may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.