TDOC Post-Earnings: Shorts Rebuild as Options Bullishness Fades

Teladoc Health has crossed its July 28 earnings event with the pre-print bullish setup now unwinding — shorts are rebuilding and the call-heavy options skew that defined last week has largely normalised.

The clearest reversal is in short interest. Heading into earnings, shorts had retreated from a late-June peak near 30 million shares to roughly 26.4 million. That trim is now being reversed. SI climbed back to 27.8 million shares by July 28, a 4.1% increase on the week, taking the position back to 15.6% of the free float. That is a high reading in absolute terms — one share in six is sold short — and the direction has flipped from cover to rebuild. The ORTEX short score confirms the pressure: it has been running in the 63-range all week, a level that ranks in the bottom 12th percentile of the universe on short positioning. Days to cover of 6.6, per the most recent FINRA settlement, means any forced unwind would take over a week at normal volume.

The lending market tells a less urgent story, however. Availability remains extremely loose at 393%, well above the 52-week low of 190% and far from any squeeze territory. Cost to borrow has drifted up only modestly to 0.45% — low by any measure and close to flat for the month. The borrow market is saying this is a conviction short, not a crowded one: plenty of stock available to borrow, no premium being paid to hold the position.

Options have normalised after last week's extreme call stacking. The put/call ratio has settled at 0.37, just one standard deviation below its 20-day average of 0.39, compared to the more-than-two-sigma bullish extreme recorded ahead of the print. The 52-week range still anchors context — 0.28 on the low end versus 1.03 on the high — and at 0.37 the market is modestly call-leaning but not dramatically so. The pre-earnings urgency has dissipated.

The Street remains divided. Canaccord lifted its target to $11 on July 21, and Bank of America raised to $10.50 earlier this month — both maintaining Buy ratings, and both targets above the current $9.36 price. But the consensus mean target sits at $7.97, implying the broader analyst community is below the market, not above it. Bulls point to virtual care platform expansion and insurance market inroads. Bears flag BetterHelp's sluggish trajectory, stubborn in-person healthcare dominance, and a path to profitability that remains unclear. Factor scores reinforce the bear case: EPS momentum ranks in the bottom 9th-to-19th percentile depending on the time horizon, and forward EPS growth ranks 15th percentile. The one bright spot is value — EV/EBITDA of 6.7x is not demanding for a name with this revenue base.

The one earnings reaction in the history with price data offers a thin read: the May 21 print produced a 1.4% next-day move and a 15.9% five-day gain. Whether the July 28 release repeats that pattern is now the dominant question — and the rebuilding short base means any upside surprise from the report would hit a position that was actively being re-established rather than already unwound.