Tesla (NASDAQ:TSLA) Trading Down 3.3% - What's Next?

Tesla, Inc. (NASDAQ:TSLA) saw its stock decline by 3.3% on Wednesday, with shares dipping to as low as $402.54 before closing at $403.84. During this trading session, the company experienced a transaction volume of 76,213,586 shares, representing a 20% decline compared to the average daily trading volume of 94,854,445 shares. The previous closing price for Tesla shares stood at $417.41.

Wall Street Analysts Forecast Growth

Several research analysts have recently published reports concerning Tesla's stock. Canaccord Genuity Group increased their price target for Tesla from $254.00 to $278.00, maintaining a "buy" rating. Needham & Company rated the stock as "hold" in their analysis. UBS Group adjusted their price target upward from $197.00 to $226.00 but issued a "sell" rating. Truist Financial also raised their target price mildly from $236.00 to $238.00 while keeping a "hold" rating. Lastly, Cantor Fitzgerald lifted their price target from $255.00 to $365.00, giving the company a "neutral" rating. Overall, there are nine analysts with a sell rating, fifteen with a hold rating, sixteen with a buy rating, and one that has issued a strong buy. The consensus rating for Tesla stands at "Hold," with an average price target of $272.06 according to data from MarketBeat.com.

Tesla Stock Down 3.3 %

The stock's 50-day moving average price is currently $353.36, while the 200-day moving average price is $269.90. Tesla holds a current ratio of 1.84, a quick ratio of 1.37, and a low debt-to-equity ratio of 0.08. The company’s market capitalization is approximately $1.30 trillion, with a price-to-earnings ratio of 110.64 and a P/E/G ratio of 10.80. The stock’s beta is noted at 2.36.

Tesla last reported its quarterly earnings on October 23. The electric vehicle manufacturer announced earnings per share (EPS) of $0.72 for the quarter, surpassing the consensus estimate of $0.58 by $0.14. Revenue for the quarter was reported at $25.18 billion, slightly below the estimated $25.47 billion. The company showed a return on equity of 10.24% and a net margin of 13.07%, with revenue growing by 7.8% compared to the same period last year. Analysts are predicting that Tesla, Inc. will post an average EPS of 1.99 for the current year.

Insider Buying and Selling at Tesla

In recent insider trading news, Tesla's CFO, Vaibhav Taneja, sold 4,000 shares of the company on November 1, at an average price of $251.76, totaling $1,007,040.00. Post-transaction, Taneja owns 105,032 shares valued at approximately $26.44 million, marking a 3.67% drop in their ownership. Additionally, Director Kathleen Wilson-Thompson sold 100,000 shares on November 11 at an average price of $346.02, which amounted to $34,602,000. Following this sale, Wilson-Thompson now holds 5,400 shares worth about $1.87 million, reflecting a 94.88% decrease in ownership. Over the past three months, insiders have sold 514,886 shares valued at $169,393,831, with corporate insiders owning 20.70% of Tesla shares.

Institutional Inflows and Outflows

A number of institutional investors have adjusted their holdings in Tesla recently. Geode Capital Management LLC raised its position by 1.8% during the third quarter, now owning 59,356,401 shares valued at $15.47 billion. FMR LLC increased its stake by 3.5%, owning 24,741,075 shares worth $6.47 billion after acquiring an additional 828,308 shares. UBS Asset Management boosted its position by 13.7%, now holding 24,377,822 shares valued at $6.38 billion. Charles Schwab Investment Management raised its stake by 1.9%, owning 16,545,824 shares worth $4.33 billion after purchasing 301,968 more shares. Jennison Associates LLC also expanded its holdings by 11.9%, now owning 12,201,212 shares valued at $3.19 billion. Institutional investors now collectively hold 66.20% of Tesla's stock.

About Tesla

Tesla, Inc. focuses on the design, development, manufacturing, leasing, and sale of electric vehicles, as well as energy generation and storage systems. The company operates primarily in two segments: Automotive and Energy Generation and Storage. The Automotive segment includes electric vehicles, automotive regulatory credits, and post-sale services, among others.

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