Ark Invest made a big move Tuesday.
The fund bought 261,829 shares — worth nearly $4.5 million— of Teladoc Health (TDOC) -), a virtual healthcare company whose stock fell slightly on the day.
The purchase, made by Ark's flagship Innovation ETF, boosted the fund's total Teladoc holding to just shy of 12.4 million shares, worth roughly $210 million and weighted at 2.7% of the fund.
The ETF is currently led by a $768 million holding in Coinbase (COIN) -), which is weighted at nearly 10% of the fund. Ark Innovation's vaunted Tesla (TSLA) -) holding has fallen to the number three position in the portfolio, worth around $650 million and weighted at 8.3%.
Related: Meet the biotech company Cathie Wood bought half a million shares of this month
The purchase comes a few weeks after Teladoc reported weaker-than-anticipated third-quarter earnings, posting $660 million in revenue and a net loss of 35 cents per share. The Street was anticipating $664 million in revenue and a net loss of 37 cents per share.
Still, the company's third-quarter revenue represents an 8% year-over-year increase, and its adjusted EBITDA of $88.8 million is up 73% from the year-ago period.
Teladoc additionally reported that its membership grew 10% year-over-year to 90 million.
The stock, which rose more than 1% Wednesday morning to $17, is still down around 29% for the year.
Related: Cathie Wood explains why she cut Ark's Tesla holding
"We're disappointed with the valuation of the stock today, which we don't believe adequately reflects the value we are driving today and will continue to drive in the future," CEO Jason Gorevic told investors during the company's third-quarter earnings call. "We also know there are significant opportunities to add value through improved business performance."
Teladoc forecasted revenue ranging from $658 million to $683 million for the current quarter; the company's full-year outlook anticipates revenue of around $2.6 billion, with a net loss of approximately $1.50 per share.
Gorevic said during the call that the company has undertaken an operational review of its business, which involves a product portfolio assessment and a review of the firm's cost structure.
"We are accelerating our efforts to ensure that our business is operating as efficiently as possible in order to drive profit growth at a level that is meaningfully higher than our revenue growth over the next few years," he said.
Analysts, on average, have granted Teladoc's stock a "hold" rating. The average price target for the stock is pegged at $22.8.
Ark Innovation, led by investor Cathie Wood, additionally sold 143,195 shares of DraftKings — worth around $5.5 million — and snapped up 233,726 shares of Recursion Pharmaceuticals, worth roughly $1.5 million.
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