Teladoc Health Insider Confidence Rewarded, Stock Hits US$1.8b Market Cap

Insiders who bought Teladoc Health, Inc. (NYSE:TDOC) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$511m as a result of the stock's 33% gain over the same period. As a result, their original purchase of US$140.8k worth of stock is now worth US$228.4k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, 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 purchase by an insider was when Independent Director Thomas McKinley bought US$82k worth of shares at a price of US$7.57 per share. We do like to see buying, but this purchase was made at well below the current price of US$12.02. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Over the last year, we can see that insiders have bought 19.00k shares worth US$141k. But insiders sold 1.87k shares worth US$24k. In total, Teladoc Health insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Teladoc Health is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Teladoc Health Insiders Bought Stock Recently

We saw some Teladoc Health insider buying shares in the last three months. Independent Director Thomas McKinley shelled out US$31k for shares in that time. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.9% of Teladoc Health shares, worth about US$17m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Teladoc Health Insider Transactions Indicate?

We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Teladoc Health insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Teladoc Health. While conducting our analysis, we found that Teladoc Health has 2 warning signs and it would be unwise to ignore them.

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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.