Teladoc Health stock price rises after aggressive investors apply pressure

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Investing.com – Teladoc Health Inc. (NYSE:TDOC) shares rose 4% on Tuesday, after activist investors Pineal Capital Management urged the company to implement a stock buyback program and conduct a strategic review.

In a public letter dated March 31, Pineal Capital urged Teladoc to launch at least a $200 million stock repurchase program and consider splitting its two main business segments. The investment firm criticized Teladoc’s board for slow decision-making and poor capital allocation, including the 2020 acquisition of Livongo.

Pineal Capital noted that Teladoc’s current trading price is about 4.18 times the enterprise value-to-EBITDA multiple for 2026. The company emphasized that Teladoc’s share price has fallen by more than 90% from its pre-pandemic peak, while the number of basic shares outstanding increased from about 90 million in 2020 to 177 million in December 2025. According to the letter, the company has never conducted a stock buyback in its listing history.

Teladoc operates through two business segments: a comprehensive care business that provides services to employers and health plans, and the mental health platform BetterHelp. The company serves more than 100 million people, and in 2025, mental health-related revenue exceeded $1.1 billion.

Pineal Capital pointed to recent policy changes, including permanent coverage for virtual care under high-deductible health plans and the $50 billion Rural Health Transformation plan, as potential growth drivers. The company said that BetterHelp’s insurance-supported revenue annualized operating rate reached about $28 million by the end of 2025, and it expects the run-rate exit operating rate to reach $100 million in 2026.

The investment firm mentioned that the recent Talkspace acquisition price was 3.0 times revenue and 25 times EBITDA, whereas, based on market consensus expectations, Teladoc’s current valuation multiples are 0.47 times revenue and 4.18 times EBITDA.

Pineal Capital warned that Teladoc’s undervalued valuation makes it vulnerable to opportunistic acquisitions.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.

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