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Cathie Wood Is Buying Teladoc (TDOC) Stock Up in a Frenzy

  • Ark Invest has purchased 344,629 shares of Teladoc (TDOC) this week.
  • The telehealth company is the largest holding across all Ark exchange-traded funds.
  • Shares of TDOC stock are down more than 55% year-to-date.
TDOC stock - Cathie Wood Is Buying Teladoc (TDOC) Stock Up in a Frenzy

Source: Postmodern Studio / Shutterstock.com

Shares of telehealth company Teladoc (NYSE:TDOC) are in the spotlight, as Cathie Wood’s Ark Invest has purchased shares of the company every day this week. From Aug. 8 to Aug. 10, Ark purchased 344,629 shares of TDOC stock.

They were bought through four exchange-traded funds (ETFs), including the flagship ARK Innovation ETF (NYSEMKT:ARKK). Oddly enough, some shares were purchased through the ARK Fintech Innovation ETF (NYSEMKT:ARKF). The latter buy has confused investors, as Teladoc does not fall into the fintech category.

The company reported its Q2 earnings on July 27. Since then, shares have declined by about 10%. Operating revenue tallied in at $592.4 million, falling within the previously reported guidance range of $580 million and $600 million. Operating revenue also came above the Zacks consensus estimate of $587 million.

Furthermore, the company reported an adjusted earnings per share, or EPS, loss of 44 cents, beating the estimate of a loss of 71 cents. Meanwhile, Teladoc recorded 4.7 million total visits, up 28% year-over-year.

Let’s get into the details of Ark’s purchases.

TDOC Stock in Focus Following Ark Purchases

Following the Aug. 10 purchases, Ark Invest now owns a total of 30.6 million shares of TDOC, making it the largest shareholder by a wide margin. The second-largest shareholder is Vanguard with a stake of 13.32 million shares as of Q1.

In addition, TDOC is now Ark Invest’s largest holding across all of its ETFs with a 6.53% weighting and market value of about $1.5 billion. Tesla (NASDAQ:TSLA) comes in second with a 6.36% portfolio weight and a market value of about $1.12 billion.

Shares of TDOC have declined by more than 55% year-to-date. The company was a major beneficiary of the coronavirus pandemic, with shares rising as high as $308. As more people vouched to stay indoors, the potential for telehealth visits soared. Still, it seemed the company was bid up to an unreasonable valuation.

Today, the stock trades just below $40. However, with the rise of monkeypox cases in recent months, Teladoc’s services could gain popularity. Last week, the White House officially declared monkeypox as a public health emergency. The declaration can increase federal funding and resources to combat the disease. Health and Human Services Secretary Xavier Becerra added:

“We are prepared to take our response to the next level in addressing this virus and we urge every American to take monkeypox seriously.”

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.


Article printed from InvestorPlace Media, https://investorplace.com/2022/08/cathie-wood-is-buying-teladoc-tdoc-stock-up-in-a-frenzy/.

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