The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Teladoc Health, Inc (NYSE:TDOC).
Teladoc Health, Inc (NYSE:TDOC) was in 40 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 50. TDOC has seen a decrease in hedge fund sentiment lately. There were 43 hedge funds in our database with TDOC holdings at the end of June. Our calculations also showed that TDOC isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. Now we’re going to take a look at the fresh hedge fund action regarding Teladoc Health, Inc (NYSE:TDOC).
Paul Tudor Jones of Tudor Investment Corp
Do Hedge Funds Think TDOC Is A Good Stock To Buy Now?
At Q3’s end, a total of 40 of the hedge funds tracked by Insider Monkey were long this stock, a change of -7% from the second quarter of 2021. The graph below displays the number of hedge funds with bullish position in TDOC over the last 25 quarters. With the smart money’s capital changing hands, there exists a few notable hedge fund managers who were increasing their holdings significantly (or already accumulated large positions).
The largest stake in Teladoc Health, Inc (NYSE:TDOC) was held by ARK Investment Management, which reported holding $2087.3 million worth of stock at the end of September. It was followed by Citadel Investment Group with a $250 million position. Other investors bullish on the company included Citadel Investment Group, Himension Capital, and Zevenbergen Capital Investments. In terms of the portfolio weights assigned to each position Copernicus Capital Management allocated the biggest weight to Teladoc Health, Inc (NYSE:TDOC), around 10.75% of its 13F portfolio. Himension Capital is also relatively very bullish on the stock, setting aside 10.11 percent of its 13F equity portfolio to TDOC.
Due to the fact that Teladoc Health, Inc (NYSE:TDOC) has witnessed a decline in interest from the aggregate hedge fund industry, it’s easy to see that there was a specific group of hedge funds that elected to cut their full holdings last quarter. It’s worth mentioning that Joseph Edelman’s Perceptive Advisors said goodbye to the biggest position of all the hedgies monitored by Insider Monkey, totaling an estimated $16.6 million in call options, and David Fiszel’s Honeycomb Asset Management was right behind this move, as the fund dropped about $16.6 million worth. These moves are important to note, as aggregate hedge fund interest dropped by 3 funds last quarter.
Let’s also examine hedge fund activity in other stocks similar to Teladoc Health, Inc (NYSE:TDOC). We will take a look at Enphase Energy Inc (NASDAQ:ENPH), Dynatrace, Inc. (NYSE:DT), NetApp Inc. (NASDAQ:NTAP), Teledyne Technologies Incorporated (NYSE:TDY), Citizens Financial Group Inc (NYSE:CFG), Entergy Corporation (NYSE:ETR), and RingCentral Inc (NYSE:RNG). This group of stocks’ market caps are similar to TDOC’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ENPH | 52 | 637786 | 8 |
| DT | 41 | 2389054 | -9 |
| NTAP | 29 | 671456 | -2 |
| TDY | 38 | 1703394 | 2 |
| CFG | 34 | 361791 | -2 |
| ETR | 30 | 283209 | -1 |
| RNG | 48 | 2905250 | 1 |
| Average | 38.9 | 1278849 | -0.4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 38.9 hedge funds with bullish positions and the average amount invested in these stocks was $1279 million. That figure was $2836 million in TDOC’s case. Enphase Energy Inc (NASDAQ:ENPH) is the most popular stock in this table. On the other hand NetApp Inc. (NASDAQ:NTAP) is the least popular one with only 29 bullish hedge fund positions. Teladoc Health, Inc (NYSE:TDOC) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for TDOC is 49.9. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 28.6% in 2021 through November 30th and beat the market again by 5.6 percentage points. Unfortunately TDOC wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on TDOC were disappointed as the stock returned -20.2% since the end of September (through 11/30) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as many of these stocks already outperformed the market since 2019.
Follow Teladoc Health Inc. (NYSE:TDOC)
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Disclosure: None. This article was originally published at Insider Monkey.
