In this article, we discuss 5 stocks that Cathie Wood is not letting go of despite losses. If you want to see more stocks in this selection, click Cathie Wood is Not Letting Go of These 10 Stocks Despite Losses.
5. Teladoc Health, Inc. (NYSE:TDOC)
Number of Hedge Fund Holders: 36
YTD Share Price Decline as of July 22: 56.84%
Teladoc Health, Inc. (NYSE:TDOC) is a New York-based virtual healthcare company. Cathie Wood boosted her Teladoc Health, Inc. (NYSE:TDOC) stake in Q2 2022 by 5%, holding more than 20 million shares worth roughly $692 million. Teladoc Health, Inc. (NYSE:TDOC) has been part of the ARK portfolio since the first quarter of 2018.
On July 20, Barclays analyst Steve Valiquette maintained an Equal Weight rating on Teladoc Health, Inc. (NYSE:TDOC) and lowered the price target on the stock to $42 from $45. Following a softer than expected Q1 print and management’s guidance cut for 2022, investors will now focus on the long-term outlook to achieve the targets outlined at the investor day last year, the analyst mentioned in a research note.
According to Insider Monkey’s data, 36 hedge funds were bullish on Teladoc Health, Inc. (NYSE:TDOC) at the end of the first quarter of 2022, down from 39 funds in the preceding quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP is one of the leading stakeholders of the company, with 1.5 million shares worth about $112 million.
Here is what Greenhaven Road Capital has to say about Teladoc Health, Inc. (NYSE:TDOC) in its Q1 2022 investor letter:
“Teladoc is the largest telehealth provider in the US and has recently begun to expand internationally. TDOC’s platform enables an ever-expanding list of patient-doctor interactions (including those for primary health care, mental health issues and chronic condition management) to transition from an on-site visit to one that can be done remotely with full video- based interaction. TDOC provides its platform of services on both a business-to-business and direct-to-consumer basis, through monthly subscription-based relationships. For its core business-to-business clients, the company contracts with a wide range of entities, including large scale employers (the company currently contracts with over 50% of the Fortune 500), health plans, health systems, and medical insurance companies, which currently cover more than 50 million members. For these customers, the company provides a win-win-win, as patients spend no time traveling and less time waiting, doctors are more efficient seeing more patients in less time, and payers (employers and plan sponsors) save money while being able to offer a highly popular additional benefit for their employees. This B to B market is projected to be a +$100 billion market opportunity and TDOC is the clear global market leader. For its direct-to- consumer clients, the company provides a growing suite of services for individuals to have affordable access to on-demand and scheduled medical services, for which their current insurance does not provide reimbursement (such as extended mental health counseling).
Although the company has been growing steadily for well over a decade, the business has transformed over the past few years as the COVID pandemic caused a significant increase in the demand for virtual healthcare. In addition, the company’s 2020 acquisitions of Livongo, the leader in virtual chronic condition management, and InTouch, a competitive telehealth platform, materially broadened the company’s product offerings. At its recent analyst day, management guided to 25-30% top line growth for each of the next three years, exiting 2024 with more than $4 billion in annual revenue. The company also anticipates expanding margins by 100-150 basis points per year in each of the next three years, while still accelerating its investments in marketing and R&D. As with many of our recent purchases, we took advantage of the decline in the company’s shares (down a breathtaking 70% from its 2021 high of almost $300 per share) to establish a small position in Teladoc.”
