Teladoc Health: Insider Purchases Generate Excitement Among Shareholders

Individual insider purchases are often unremarkable, but when multiple insiders, like at Teladoc Health, make moves, it is a positive signal for shareholders. Although shareholders should not follow insider transactions blindly, it is advisable to keep an eye on their buying and selling behavior. Noteworthy is the purchase by independent director Thomas McKinley, who acquired shares worth $82,000 at a price of $7.57 per share over the last twelve months. Even though the current price is $9.04, this indicates that McKinley considered the stock to be undervalued. While this raises questions about the assessment of the current valuation, it is nevertheless a positive signal. In total, insiders bought 19,000 shares worth $141,000 in the past year, while only selling 1,870 shares for $24,000. This makes them net buyers, reflecting the confidence of the company's insiders. A closer look at insider holdings is warranted: Teladoc Health insiders own shares valued at about $14 million, which represents 0.9% of the company. This is a solid, albeit not outstanding, figure, which nonetheless signals some alignment between management and minority shareholders. As informed shareholders, it is important to consider both insider activity and the risks associated with a stock before making investment decisions. In this context, it is advisable to look at a list of companies with high return on equity and low debt.