Something that Might Change Your Mind About Two of These Three Falling Stocks

Teladoc Inc (NYSE:TDOC)’s slaughter on the market today had its roots in the decision of insurer Highmark to not renew its contract with the company that expires on December 31. However, Deutsche Bank analyst George Hill expects the $752.87 million tele-health company to be compensated for the loss in customers by new business. Hill also reiterated his ‘Buy’ rating on the company, but lowered the price target to $34 from $39. Following its IPO in July this year, Teladoc kept an uptrend till early August, but has been on a downhill journey since then depreciating by nearly 32% from the IPO levels.

Despite the “bulishness” of the Deutsche Bank analyst, hedge funds are not so fond of the company as only two investors from our database held $1.54 million worth of Teledoc’s stock at the end of June, one of which is Ken Griffin’s Citadel Investment Group, which owned some 71,000 shares valued at $1.35 million.

InspireMD Inc (NYSEMKT:NSPR) felt the effects of the reverse split of 1:10 on its first post-split trading day. The $11.61 million medical device company also reduced its outstanding shares to 50 million from 125 million. So far this year the company’s stock has plunged by more than 83% with a large part of that fall coming in early March, when the company announced an equity offering of 34 million shares.

At the end of June a total of seven hedge funds held stakes worth $3.02 million in aggregate in InspireMD Inc (NYSEMKT:NSPR), representing 13.8% of the company’s market cap, as compared to eight funds with $4.69 million worth of shares at the end of March. Steven Boyd‘s Armistice Capital is the largest stockholder of InspireMD Inc (NYSEMKT:NSPR) owning 6.56 million shares valued at $1.84 million.

Disclosure: None