DA Davidson analysts confirmed their Buy rating for telemedicine specialist Teladoc Health Inc. (NYSE: TDOC) last week. However, this news had little impact on the quotations since investors are still influenced by the company’s subpar financial performance for the second quarter.
Last week, DA Davidson recommended Teladoc Health Inc. (TDOC) as a Buy with a $45.00 target price. This equates to a 20% increase above the current price. According to analysts, TDOC is presently the market leader in the United States telemedicine sector and will remain so owing to its scale and distinct service offering.
Analysts’ high valuation, however, did not result in a considerable increase in TDOC prices. The cause was the second-quarter financial performance, which mildly disappointed Wall Street. To begin with, the market has yet to approve Teladoc Health’s $3 billion acquisition of Livongo, a healthy living platform.
Furthermore, Teladoc Health Inc. (TDOC) reported a decline in income as well as a fall in total visits. Although it might be more accurate to describe it as a leveling off following abnormal quarters of the epidemic.
Under epidemiological constraints, Teladoc Health Inc. (TDOC) provided remote connections with medical doctors, which was sometimes the only way to obtain guidance. Since most medical institutions’ limitations have been loosened, the natural trend has been to minimize visits to the Teladoc Health platform.
As a result, under more uniform settings, it will be possible to judge the dynamism of telemedicine professionals more objectively.
Focusing on the company’s market volatility shows that it has a 1-Week Volatility index of 8.19%, and 7.41% for the month. This stock’s Average True Range (ATR) currently stands at 3.19, with the beta factor poised at 0.81.
The indicator of Volatility helps exhibit the extent to which a stock is likely to plummet or climb when the rest of the market also dips or surges. If a stock has a beta score above 1, then its rate of volatility is high. Figures lower than 1, therefore, mean that the stock’s volatility at that moment is low.