Talkspace (NASDAQ:TALK) Sees Large Volume Increase - Here's Why

Key Points

• Trading volume surged — About 8.15 million shares changed hands (a 149% increase from the prior session) while the stock traded around $5.14, essentially flat for the day.
• Analyst sentiment has weakened — A string of downgrades has left Talkspace with a consensus "Hold" rating and an average price target of $5.56, close to the current share price.
• Fundamentals and institutional interest — The company slightly beat quarterly EPS and revenue estimates, has a market cap of ~$850.7M and a high P/E (~102.7), and institutional investors now own about 57.37% of the stock after several funds increased stakes.

Talkspace, Inc. (NASDAQ:TALK - Get Free Report) shares saw unusually-high trading volume on Tuesday . Approximately 8,150,678 shares were traded during mid-day trading, an increase of 149% from the previous session's volume of 3,268,691 shares.The stock last traded at $5.1350 and had previously closed at $5.14.

Analysts Set New Price Targets

TALK has been the topic of several recent analyst reports. KeyCorp cut Talkspace from an "overweight" rating to a "hold" rating in a research report on Tuesday, March 10th. Needham & Company LLC downgraded Talkspace from a "buy" rating to a "hold" rating in a research note on Monday, March 9th. Northland Securities lowered Talkspace from a "strong-buy" rating to a "hold" rating in a report on Tuesday, March 10th. Wall Street Zen downgraded Talkspace from a "strong-buy" rating to a "buy" rating in a report on Sunday, March 8th. Finally, Weiss Ratings restated a "hold (c-)" rating on shares of Talkspace in a research report on Monday, December 29th. One analyst has rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat, Talkspace has an average rating of "Hold" and a consensus price target of $5.56.

Talkspace Stock Down 0.1%

The company has a market cap of $850.66 million, a price-to-earnings ratio of 102.72 and a beta of 1.17. The company has a fifty day simple moving average of $4.28 and a two-hundred day simple moving average of $3.49.

Talkspace (NASDAQ:TALK - Get Free Report) last issued its quarterly earnings data on Thursday, February 19th. The company reported $0.03 earnings per share for the quarter, topping analysts' consensus estimates of $0.02 by $0.01. Talkspace had a net margin of 3.40% and a return on equity of 6.97%. The business had revenue of $63.00 million during the quarter, compared to analysts' expectations of $61.91 million. On average, research analysts predict that Talkspace, Inc. will post 0.08 EPS for the current year.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its holdings in shares of Talkspace by 5.4% during the third quarter. Vanguard Group Inc. now owns 9,453,000 shares of the company's stock worth $26,090,000 after buying an additional 483,012 shares in the last quarter. Deutsche Bank AG boosted its position in Talkspace by 14.6% during the fourth quarter. Deutsche Bank AG now owns 7,094,525 shares of the company's stock worth $25,753,000 after acquiring an additional 905,304 shares during the last quarter. American Century Companies Inc. grew its stake in Talkspace by 4.7% in the 2nd quarter. American Century Companies Inc. now owns 6,750,434 shares of the company's stock worth $18,766,000 after acquiring an additional 300,476 shares during the period. Geode Capital Management LLC raised its holdings in Talkspace by 0.5% in the 4th quarter. Geode Capital Management LLC now owns 3,413,825 shares of the company's stock valued at $12,395,000 after acquiring an additional 15,436 shares during the last quarter. Finally, Royce & Associates LP raised its holdings in Talkspace by 39.7% in the 4th quarter. Royce & Associates LP now owns 3,036,360 shares of the company's stock valued at $11,022,000 after acquiring an additional 862,098 shares during the last quarter. Institutional investors and hedge funds own 57.37% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.