Teladoc Stock Extends Rebound on Merger-Driven Upgrade

Teladoc stock has more than doubled in 2020

Deputy Editor
Aug 18, 2020 at 9:40 AM
facebook twitter linkedin

Last night, Teladoc Health Inc (NYSE:TDOC) received an upgrade from Credit Suisse to "outperform" from "neutral." The firm cited Teladoc's merger with Livongo Health (LVGO), a "digital health giant" likely to be ahead of the competition, and added in a price-target hike to $249 from $225. This morning, TDOC is still rallying off this bull note, up 3.2% at $211.49 at last check, likely due to an unconfirmed upgrade from Verity Research to "buy" from "hold."

With today's extended gains, Teladoc stock is facing off with overhead pressure at the 20-day moving average. TDOC nabbed a record high of $253 on Aug. 4, and has more than doubled in 2020. Plus, the shares' 10% monthly deficit so far has been contained by its 100-day moving average.

Credit Suisse upgrade is in concert with the overall brokerage sentiment, with 14 out of 24 at a "buy" or better rating, and not a single "sell" in sight. Plus, the 12-month consensus target price of $227.16 is a 10.8% premium to last night's close. 

In the options pits, calls have more than doubled puts in the last 10 weeks. This is per TDOC's 50-day call/put volume ratio of 2.39 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits higher than 62% of all readings from the past year, meaning options traders are slightly more call-heavy than usual.

Echoing this, the stock's Schaeffer's put/call open interest ratio (SOIR) sits in the 8th percentile of its annual range, suggesting a heavy call bias. In other words, there's a lot of options-related pessimism that could unwind and push the stock higher.


Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!