Teladoc (NYSE:TDOC) (GB:0LDR) shares are in focus this week after the once-investor favorite telehealth platform announced another executive reshuffle recently. The company, which is facing multiple class action lawsuits, is slated to report its second-quarter results in about two weeks.
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Teladoc’s Plentiful Woes
Teladoc was once an investor darling during the peak pandemic days, benefiting from its telemedicine solutions that were ideal during lockdowns. Its share price soared to as high as $291 in February 2021. Despite its consistently increasing revenue, the company has struggled to achieve profitability. As a result, its share price has plummeted by over 94% over the past three years.
While ongoing concerns about Teladoc’s business model and expenses continue, recent unsettling developments at the executive level have added to investor unease. Earlier this year, Jason Gorevic resigned as TDOC’s CEO, with CFO Mala Murthy assuming the interim CEO role. Teladoc later appointed industry veteran Chuck Divita as its new CEO.
However, Divita’s appointment did little to halt the decline in TDOC’s share price, which fell by nearly 15% over the past month. Adding to investor worries, Teladoc recently underwent another leadership shakeup by terminating its President of Enterprise Growth and Global Markets without cause. Compounding the uncertainty, Teladoc is concurrently grappling with multiple class action lawsuits filed by Levi & Korsinsky, Rosen Law Firm, and Bragar Eagel & Squire.
TDOC’s Upcoming Q2 Results
Consequently, Teladoc’s upcoming Q2 result on July 23 is a key event to keep an eye on for investors. Analysts expect TDOC to incur a net loss per share of $0.34 on revenue of roughly 658.6 million for the quarter. In the comparable year-ago period, Teladoc’s net loss per share of $0.40 had come in narrower than analysts’ estimates by $0.01.
Is Teladoc a Buy, Sell, or Hold?
Overall, the Street has a Moderate Buy consensus rating on Teladoc, alongside an average TDOC price target of $16.50. This points to a nearly 79.1% potential upside in the stock. At the same time, TDOC remains one of the most shorted names on Wall Street at present.
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