Talkspace (NASDAQ:TALK) Releases Quarterly Earnings Results, Misses Expectations By $0.04 EPS

Key Points

• Talkspace missed quarterly expectations: The company reported a loss of $0.01 per share, $0.04 below the consensus estimate, while revenue of $61.67 million fell short of the $67.93 million forecast.
• Shares remain near their 52-week high: TALK traded around $5.22, compared with a 52-week range of $2.45 to $5.25, and recorded unusually heavy trading volume.
• Analyst sentiment is cautious: Weiss Ratings downgraded the stock to “sell,” while the broader analyst consensus remains “hold” with an average price target of $5.56; insiders own 23.5% of the company, and one insider recently sold shares to cover tax obligations.

Talkspace (NASDAQ:TALK - Get Free Report) posted its quarterly earnings results on Thursday. The company reported ($0.01) EPS for the quarter, missing analysts' consensus estimates of $0.03 by ($0.04), Zacks reports. Talkspace had a return on equity of 1.03% and a net margin of 0.49%.The company had revenue of $61.67 million during the quarter, compared to the consensus estimate of $67.93 million.

Talkspace Price Performance

TALK stock traded up $0.01 during mid-day trading on Friday, reaching $5.22. 7,090,357 shares of the company traded hands, compared to its average volume of 1,378,855. The company has a fifty day moving average price of $5.21 and a 200-day moving average price of $4.95. Talkspace has a 52-week low of $2.45 and a 52-week high of $5.25. The company has a market capitalization of $874.40 million, a P/E ratio of 522.52 and a beta of 1.10.

Analyst Ratings Changes

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

Insider Activity at Talkspace

In related news, insider John Charles Reilly sold 55,144 shares of the business's stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $5.21, for a total transaction of $287,300.24. Following the completion of the transaction, the insider owned 1,057,975 shares of the company's stock, valued at approximately $5,512,049.75. The trade was a 4.95% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Company insiders own 23.50% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in TALK. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of Talkspace by 2.8% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 142,143 shares of the company's stock worth $364,000 after acquiring an additional 3,924 shares in the last quarter. Parallel Advisors LLC lifted its stake in Talkspace by 25.8% in the third quarter. Parallel Advisors LLC now owns 19,500 shares of the company's stock worth $54,000 after purchasing an additional 4,000 shares during the last quarter. Intech Investment Management LLC boosted its position in Talkspace by 11.9% during the fourth quarter. Intech Investment Management LLC now owns 49,701 shares of the company's stock valued at $180,000 after buying an additional 5,277 shares during the period. Invesco Ltd. grew its stake in shares of Talkspace by 10.1% during the fourth quarter. Invesco Ltd. now owns 87,765 shares of the company's stock valued at $319,000 after buying an additional 8,015 shares during the last quarter. Finally, Cerity Partners LLC bought a new position in shares of Talkspace during the second quarter valued at about $28,000. 57.37% of the stock is currently owned by hedge funds and other institutional investors.

About Talkspace

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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