Renaissance Technologies LLC Purchases 523,400 Shares of Talkspace, Inc. $TALK

Key Points

• Renaissance Technologies increased its Talkspace stake by 24.1%, purchasing 523,400 shares to reach 2.69 million shares, or roughly 1.61% of the company. Institutional investors collectively own 57.37% of Talkspace.
• Talkspace’s latest quarterly results fell short of expectations, with a loss of $0.04 per share versus the estimated $0.02 profit and revenue of $61.68 million versus the $63.32 million consensus.
• Analyst sentiment remains cautious: Talkspace has an average “Hold” rating and a $5.56 target price, while Weiss Ratings downgraded the stock to “Sell.” An insider also sold 55,144 shares to cover tax obligations tied to vested equity awards.

Renaissance Technologies LLC lifted its position in shares of Talkspace, Inc. (NASDAQ:TALK - Free Report) by 24.1% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 2,690,800 shares of the company's stock after buying an additional 523,400 shares during the period. Renaissance Technologies LLC owned about 1.61% of Talkspace worth $13,925,000 at the end of the most recent quarter.

Other hedge funds have also modified their holdings of the company. Cerity Partners LLC acquired a new stake in Talkspace in the 2nd quarter valued at approximately $28,000. Dynamic Technology Lab Private Ltd acquired a new position in Talkspace during the 3rd quarter worth approximately $35,000. Neuberger Berman Group LLC acquired a new position in Talkspace during the 4th quarter worth approximately $38,000. Engineers Gate Manager LP bought a new position in shares of Talkspace during the 2nd quarter worth approximately $39,000. Finally, Vise Technologies Inc. bought a new position in shares of Talkspace during the 4th quarter worth approximately $40,000. 57.37% of the stock is currently owned by institutional investors.

Insider Activity at Talkspace

In other news, insider John Charles Reilly sold 55,144 shares of Talkspace stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $5.21, for a total value of $287,300.24. Following the completion of the transaction, the insider owned 1,057,975 shares of the company's stock, valued at $5,512,049.75. This trade represents a 4.95% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 23.50% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Separately, Weiss Ratings downgraded shares of Talkspace from a "hold (c)" rating to a "sell (d+)" rating in a report on Tuesday, May 12th. One equities research analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $5.56.

Talkspace Price Performance

Shares of NASDAQ TALK opened at $5.22 on Friday. The business has a 50-day moving average of $5.21 and a 200-day moving average of $4.91. The stock has a market capitalization of $874.40 million, a price-to-earnings ratio of 522.52 and a beta of 1.07. Talkspace, Inc. has a fifty-two week low of $2.22 and a fifty-two week high of $5.25.

Talkspace (NASDAQ:TALK - Get Free Report) last released its earnings results on Monday, May 11th. The company reported ($0.04) earnings per share for the quarter, missing the consensus estimate of $0.02 by ($0.06). The firm had revenue of $61.68 million during the quarter, compared to the consensus estimate of $63.32 million. Talkspace had a net margin of 0.49% and a return on equity of 1.03%. On average, sell-side analysts expect that Talkspace, Inc. will post 0.13 EPS for the current year.

Talkspace Company Profile

Talkspace, Inc NASDAQ: TALK is a digital mental health company that provides online therapy and psychiatry services through a secure, cloud-based platform. Headquartered in New York City, Talkspace enables individuals and couples to connect with licensed therapists and psychiatrists via text messaging, live audio, and video sessions. The company's platform is accessible through web and mobile applications, allowing clients to seek professional support anytime and from any location with an internet connection.

The company's core offerings include therapy plans that range from unlimited text-based messaging with a dedicated therapist to scheduled live video sessions.

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