Why Teladoc Health Stock Fell 20.6% in December




  • In Business
  • 2019-01-11 18:35:00Z
  • By Joe Tenebruso, The Motley Fool
 

What happened

Teladoc Health (NYSE: TDOC) lost more than 20% of its value last month, according to data provided by S&P Global Market Intelligence, amid allegations of wrongdoing by one the company's key executives.

So what

On Dec. 5, The Southern Investigative Reporting Foundation (SIRF) issued a report regarding an alleged affair between Teladoc's Chief Operating Officer and Chief Financial Officer Mark Hirschhorn and an employee of the company. SIRF purported that during the relationship, the employee received "a series of promotions over colleagues with either more industry experience or better credentials." SIRF also claimed that Hirschhorn gave the employee advice in regard to when to sell her Teladoc shares.

That same day, Teladoc released a statement refuting SIRF's claims. The company said SIRF's report contained "several factual inaccuracies." Teladoc also stated that it took "swift and appropriate disciplinary action" after an investigation found "violations solely of our workplace relationship policy."

Then, on Dec. 17, Teladoc announced that Hirschhorn would resign on Jan. 1, 2019.

Image source: Getty Images.

Now what

Hirschhorn's resignation should alleviate some concerns regarding Teladoc's management and help the company move forward from this alleged scandal. Investors apparently agree; Teladoc's stock is up nearly 12% so far in January.

The business itself remains strong. As the clear leader in telehealth services -- such as video-conferencing consultations with doctors and other medical professionals -- Teladoc is well positioned to win within a market that's projected to more than quadruple in size by 2026. As such, and with its stock still well off its highs of the past year, investors may want to use this recent sell-off as an opportunity to pick up some Teladoc shares at a discount.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Teladoc Health. The Motley Fool has a disclosure policy.

COMMENTS

More Related News

Teledyne Technologies Inc (TDY) Q4 2018 Earnings Conference Call Transcript
Teledyne Technologies Inc (TDY) Q4 2018 Earnings Conference Call Transcript

TDY earnings call for the period ending December 30, 2018.

WSFS Financial Corp (WSFS) Q4 2018 Earnings Conference Call Transcript
WSFS Financial Corp (WSFS) Q4 2018 Earnings Conference Call Transcript

WSFS earnings call for the period ending December 31, 2018.

Forget Penny Stocks: Your Money Is Better Off in These 3 Companies
Forget Penny Stocks: Your Money Is Better Off in These 3 Companies

Snap, Goldman Sachs, and SolarEdge Technologies have better business models and more upside potential than most penny stocks.

K12 Incorporated (LRN) Q2 2019 Earnings Conference Call Transcript
K12 Incorporated (LRN) Q2 2019 Earnings Conference Call Transcript

LRN earnings call for the period ending December 31, 2018.

3 Top Mining Stocks to Watch Now
3 Top Mining Stocks to Watch Now

These stocks represent three very different ways to profit from mining.

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business

facebook
Hit "Like"
Don't miss any important news
Thanks, you don't need to show me this anymore.