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Institutional Investment, Insider Activities, and Analyst Ratings on Tesla, Inc. (NASDAQ: TSLA)

GOOVER DAILY REPORT July 6, 2024
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TABLE OF CONTENTS

  1. Summary
  2. Institutional Investment in Tesla, Inc.
  3. Insider Trading Activities
  4. Analyst Ratings and Financial Performance
  5. Company Operations and Market Impact
  6. Conclusion

1. Summary

  • The report titled 'Institutional Investment, Insider Activities, and Analyst Ratings on Tesla, Inc. (NASDAQ: TSLA)' provides a detailed examination of the recent changes in institutional investment and insider trading activities concerning Tesla, Inc. It sheds light on the stock performance, market capitalization, earnings predictions, and the company’s financial health. Key findings include substantial increases in Tesla holdings by significant investors like Vanguard Group Inc. and Norges Bank, as well as reductions by others, including Chelsea Counsel Co. Additionally, insider trading activities by senior individuals such as Andrew D. Baglino and Robyn M. Denholm have been outlined, highlighting their significant stock sales. The report also discusses analyst ratings and quarterly earnings, with varied recommendations reflecting mixed market sentiment. Tesla’s primary operational segments in automotive and energy generation have been analyzed in the context of its market capitalization and stock volatility.

2. Institutional Investment in Tesla, Inc.

  • 2-1. Stakes acquired or increased by institutional investors

  • Institutional investors have recently increased their stakes in Tesla, Inc. Gleason Group Inc. notably bought a new stake of 2,490 shares, valued at approximately $438,000, during the first quarter. Vanguard Group Inc., one of the major investors, increased its position by 1.7% in the fourth quarter, adding 3,866,361 shares, bringing their total holdings to 229,806,372 shares, worth $57,102,287,000. Norges Bank acquired a new stake in Tesla during the fourth quarter valued at approximately $7,844,757,000. Morgan Stanley also grew its position by 7.8% during the third quarter, leading to holdings of 30,160,747 shares, worth $7,546,823,000. Other institutions like Charles Schwab Investment Management Inc. increased their stakes by purchasing an additional 458,804 shares in the fourth quarter, making a total of 15,155,878 shares worth $3,765,933,000. American Century Companies Inc. also showed a minor growth of 0.3% by buying an extra 19,887 shares, resulting in a total of 6,702,634 shares worth $1,677,133,000.

  • 2-2. Stakes reduced by institutional investors

  • Conversely, several institutional investors have reduced their holdings in Tesla. Chelsea Counsel Co., for instance, cut its stake by 15.9% in the fourth quarter, now holding 1,060 shares worth $263,000 after selling 200 shares. Baird Financial Group Inc. decreased its holdings by 2.7% in the same period, selling 14,839 shares, resulting in a total of 528,922 shares valued at $131,427,000. Northwest Capital Management Inc. reduced its stake by 7.1% in the first quarter, selling 320 shares and holding 4,187 shares worth $736,000. Dynamic Advisor Solutions LLC sold 123 shares during the first quarter, holding 84,483 shares valued at $14,851,000. Other changes include Los Angeles Capital Management LLC reducing their holdings by 76.2%, selling 804,473 shares to hold 250,983 shares worth $44,120,000.

3. Insider Trading Activities

  • 3-1. Sales by senior vice presidents and directors

  • Numerous Tesla insiders, including senior vice presidents and directors, have been involved in significant stock sales. For instance, Senior Vice President Andrew D. Baglino sold 10,500 shares of Tesla stock at an average price of $176.20 per share on April 1st, amounting to a total value of $1,850,100. Following this transaction, Baglino retains 31,230 shares in the company, valued at approximately $5,502,726. Further, Director Robyn M. Denholm sold 93,705 shares at an average price of $184.86 on May 6th for a total value of $17,322,306.30. After this sale, Denholm now owns 15,000 shares, evaluated around $2,772,900. Additionally, SVP Xiaotong Zhu sold 650 shares at an average price of $174.21 on June 6th, amounting to a total of $113,236.50. Zhu currently holds 65,155 shares valued at approximately $11,350,652.55. Insider sales have shown substantial activity, with insiders in total selling 104,855 shares worth $19,285,643 over the last ninety days, and company insiders holding 25.10% of the company's stock.

  • 3-2. Impact of insider trading on stock performance

  • The impact of recent insider trading activities has raised significant attention regarding Tesla's stock performance. The sale of significant shares by insiders like senior vice presidents and directors can often lead to speculation and uncertainty among investors and analysts, potentially affecting the stock's market behavior. For instance, substantial sales by insiders such as Andrew D. Baglino, Robyn M. Denholm, and Xiaotong Zhu may signal varied interpretations, including personal financial strategy or insider projections of stock value trajectories. These insider trading events have coincided with notable fluctuations in Tesla's stock price. The stock has ranged from a fifty-two-week low of $138.80 to a high of $299.29, reflecting the market's reaction to internal movements within the company. The overall market capitalization currently stands around $618.39 billion, with a price-to-earnings ratio of 48.97. Furthermore, Tesla's stock performance is noted for its volatility, with a beta of 2.32 indicating higher sensitivity to market changes. Analysts continue to monitor these insider activities closely, reflecting the mixed sentiment in the market and the potential influence on investor confidence and stock performance.

4. Analyst Ratings and Financial Performance

  • 4-1. Quarterly earnings and revenue reports

  • Tesla, Inc. (NASDAQ: TSLA) reported its quarterly earnings on April 23rd. The company met analysts' consensus estimates with an earnings per share (EPS) of $0.35. Additionally, Tesla's revenue for the quarter was $21.30 billion, which was below the analysts' expectation of $22.15 billion. The company achieved a net margin of 14.37% and a return on equity of 13.18%. Several documents reported these results: Tesla’s revenue and earnings per share hitting consensus estimates were documented in filings such as 'go-public-web-eng-3878853751778188850-0-0' and confirmed by multiple sources including 'go-public-news-eng-3150012732801432756-0-0' and 'go-public-web-eng-N6615677520447703696-0-0'.

  • 4-2. Consensus pricing targets and analyst recommendations

  • Analyst ratings for Tesla (NASDAQ: TSLA) varied from 'sell' to 'buy'. As of the latest reports, Tesla had eight 'sell' ratings, seventeen 'hold' ratings, and nine 'buy' ratings. The consensus price target according to MarketBeat is $185.90. Several key changes were noted in analyst recommendations: - Bank of America upgraded Tesla from a 'neutral' rating to a 'buy' rating with a $220.00 price target (go-public-web-eng-3878853751778188850-0-0). - Evercore ISI lowered its price target from $155.00 to $145.00, issuing an 'in-line' rating (go-public-web-eng-171739241074299009-0-0). - Morgan Stanley reiterated its 'overweight' rating with a $310.00 price target (go-public-web-eng-N6615677520447703696-0-0). - Royal Bank of Canada reduced its price target from $293.00 to $227.00 but maintained an 'outperform' rating (go-public-web-eng-171739241074299009-0-0). Tesla’s stock performance reflects a recent trading price of around $182.58 with a 52-week range of $138.80 to $299.29 (go-public-web-eng-N3906612525722676769-0-0). Key financial metrics include a market capitalization of $582.28 billion, a P/E ratio of 46.58, and a PEG ratio of 4.50.

5. Company Operations and Market Impact

  • 5-1. Overview of Tesla’s business segments

  • Tesla, Inc. operates in two primary segments: Automotive, and Energy Generation and Storage. In the Automotive segment, Tesla designs, develops, manufactures, leases, and sells electric vehicles. This segment also entails sales of automotive regulatory credits, non-warranty after-sales vehicle services, used vehicles, body shop and parts services, supercharging, retail merchandise, and vehicle insurance services. The Energy Generation and Storage segment involves the design, manufacture, installation, sale, and leasing of energy storage products and solar energy systems.

  • 5-2. Market capitalization and stock trading performance

  • As of the most recent data, Tesla, Inc. (NASDAQ: TSLA) has a market capitalization of $567.71 billion. The company’s stock has a price-to-earnings ratio of 45.41, a PEG ratio of 4.41, and a beta of 2.32, reflecting high volatility relative to the market. Over the past year, the stock has seen a high of $299.29 and a low of $138.80. The average trading volume stands at approximately 95,167,063 shares. The stock’s 50-day simple moving average is $172.90 and the 200-day simple moving average is $194.98. Tesla's financial health is further supported by a current ratio of 1.72 and a quick ratio of 1.17, indicating a strong ability to cover short-term liabilities. Additionally, Tesla's debt-to-equity ratio is 0.04, demonstrating a low level of debt.

6. Conclusion

  • The comprehensive analysis provided in this report on Tesla, Inc. (NASDAQ: TSLA) uncovers the intricate dynamics of institutional investment, insider trading activities, and varied analyst perspectives. A significant focus on Tesla's operational strengths in electric vehicles and energy storage indicates robust business segments despite market volatility. Key institutional investors like Vanguard Group Inc. and Norges Bank have notably increased their stakes, contrasting with reductions by entities such as Chelsea Counsel Co. and Baird Financial Group Inc. Insider trading by senior executives such as Andrew D. Baglino and Robyn M. Denholm, involving significant stock sales, has contributed to fluctuations in Tesla's stock performance. Analysts' ratings remain mixed, with recommendations ranging from 'sell' to 'buy,' presenting a diverse market sentiment. While Tesla's financial metrics indicate a strong position, varying quarterly earnings and market responses suggest close monitoring. The report underscores the importance of Tesla's operational segments and recommends that stakeholders consider these factors for future investment decisions. Limitations include market unpredictability and potential internal changes; hence, continuous assessment and adaptable strategies are advised for managing investments in Tesla, Inc.

7. Glossary

  • 7-1. Tesla, Inc. [Company]

  • Tesla, Inc. is known for designing, developing, and manufacturing electric vehicles and energy storage systems. It operates in both the United States and international markets. Tesla’s stock performance, market capitalization, and insider trading activities are key aspects examined in this report.

  • 7-2. Andrew D. Baglino [Person]

  • Senior Vice President of Tesla, Inc., involved in multiple instances of insider stock selling, which is a critical factor affecting the company's stock performance.

  • 7-3. Robyn M. Denholm [Person]

  • Director at Tesla, Inc. who has also participated in significant insider stock sales. Her trading activities are instrumental in understanding Tesla's internal stock dynamics.

8. Source Documents