On October 11, 2023, UBS Group, a prominent global financial services company, lowered its price target for Tesla (NASDAQ:TSLA) from $290.00 to $266.00 in a note issued to investors, as reported by Benzinga. The brokerage currently maintains a “neutral” rating on the electric vehicle producer’s stock. According to UBS Group’s revised price objective, there is a potential slight downside of 0.08% from the stock’s current price.
As of Tuesday’s trading hours, shares of TSLA stock increased by $6.54 and reached $266.21. The company witnessed a trading volume of 72,674,934 shares, slightly below its average volume of 142,093,484 shares. Tesla boasts a debt-to-equity ratio of 0.02 and exhibits favorable liquidity ratios with a current ratio of 1.59 and a quick ratio of 1.07.
With a market capitalization of $844.95 billion and a price-to-earnings ratio of 75.28, Tesla sits prominently within the automotive industry landscape as an influential player in the electric vehicle sector. Additionally, it demonstrates a healthy price-to-earnings-growth ratio of 4.29 and carries a beta value of 2.07.
Reviewing the historical performance of Tesla’s stock prices over different time periods, we find that the fifty-day moving average stands at $249.95 while the two-hundred-day moving average rests at $228.53—a testament to upward momentum in recent months despite short-term fluctuations in market sentiment towards the stock.
In terms of its yearly performance metrics, Tesla’s shares have experienced substantial volatility over the past fifty-two weeks with prices ranging from lows of $101.81 to highs near $299 per share—an impressive increase considering such significant swings in value.
Looking beyond analyst opinions and focusing on the ownership structure, hedge funds have displayed varying opinions on Tesla. Some funds have increased their holdings in the company, while others have reduced their positions. Notably, Contravisory Investment Management Inc. acquired a new stake in Tesla during the third quarter valued at $25,000. Likewise, Alpha Paradigm Partners LLC acquired a stake valued at approximately $27,000 during the same period.
Furthermore, Mendota Financial Group LLC witnessed substantial growth in its holdings of Tesla shares, increasing by an impressive 3,733.3% during the second quarter—a significant testament to their confidence in the electric vehicle manufacturer’s future prospects. Annapolis Financial Services LLC and GW&K Investment Management LLC also made strategic moves by raising their stakes or acquiring new positions respectively.
In July 2023, Tesla unveiled its quarterly earnings results. Surpassing analyst estimates, the electric vehicle producer reported earnings per share (EPS) of $0.91 for the quarter compared to the consensus estimate of $0.69—a positive surprise of $0.22 per share indicating strong financial performance. Additionally, Tesla’s quarterly revenue amounted to $24.93 billion—exceeding analyst predictions of $24.22 billion.
From a profitability standpoint, Tesla demonstrated a net margin of 12.97% alongside a return on equity (ROE) of 26.10%. These figures elucidate the company’s ability to generate profits relative to its shareholders’ equity and exemplify consistent growth compared to the previous year’s corresponding quarter when it recorded earnings per share of $0.65.
Taking into account all available information and analyzing market dynamics surrounding Tesla, research analysts project that for this fiscal year, Tesla will likely post earnings per share (EPS) amounting to 2.92—an estimate which will be closely monitored by investors.
As shareholders and market participants evaluate UBS Group’s revised price target for Tesla alongside recent financial developments such as quarterly earnings, it remains a critical time for investors to scrutinize the company’s fundamental aspects and make informed decisions based on meticulous analysis and thorough due diligence.
[bs_slider_forecast ticker=”G”]
Tesla’s Stock Evaluation, Analyst Ratings, and Insider Trading Activities
Tesla, the American electric vehicle and clean energy company, has received various evaluations and ratings from research analysts recently. Citigroup, a multinational investment bank, raised its price target on Tesla’s shares from $215.00 to $278.00 while maintaining a “neutral” rating in a research note issued on July 12th. StockNews.com also initiated coverage of Tesla on October 5th, giving it a “hold” rating. Royal Bank of Canada reiterated an “outperform” rating with a price target set at $305.00 on September 26th. Wedbush analysts increased their price objective for Tesla from $300.00 to $350.00 and categorized the stock as “outperform” in their report released on July 20th.
On the contrary, TD Cowen raised concerns and revised their target price on Tesla’s stock from $150.00 to $200.00 while assigning it a “market perform” rating in their research report published on July 20th. In total, out of the twenty-seven analysts who have evaluated Tesla’s stock, six have suggested selling, eighteen have recommended holding, and thirteen have endorsed buying shares of the company.
According to Bloomberg’s consensus rating data as of October 11th, Tesla is currently assigned a “Hold” rating with an average price target of $239.27 by market experts.
In related news regarding insider trading within the company, SVP Andrew D. Baglino sold 10,500 shares of Tesla’s stock on July 27th at an average price of $268.23 per share resulting in a total transaction value of $2,816,415. Following this sale, Baglino holds direct ownership of 66,834 shares worth approximately $17,926,883.
Additionally, SVP Xiaotong Zhu sold 1,065 shares of Tesla’s stock on September 6th at an average price of $249.62 per share, totaling $265,845.30. After completing this transaction, Zhu holds 59,540 shares directly valued at around $14,862,374.80.
These sales were disclosed in filings with the Securities & Exchange Commission (SEC) and can be accessed on the SEC website through the provided hyperlinks. Overall, company insiders have collectively sold 45,565 shares of Tesla’s stock during the last quarter with a total value of $11,547,190. This indicates that insiders hold 20.90% of the company’s stock.
It is important for investors and market participants to consider these evaluations and insider trading activities when assessing their investment decisions related to Tesla’s stock. The analysis from various research analysts provides a comprehensive view of its current standing in the market while insider transactions reveal insights into internal perspectives within the company.
Please note that these ratings and evaluations are based on previously available information up until October 11th and may not reflect current or future changes in Tesla’s stock performance or personnel activities within the company.
Sources:
Citigroup research note – July 12th
StockNews.com report – October 5th
Royal Bank of Canada research report – September 26th
Wedbush research report – July 20th
TD Cowen research report – July 20th
Bloomberg consensus rating data – October 11th
SEC filing disclosure for Andrew D. Baglino sale – July 27th
SEC filing disclosure for Xiaotong Zhu sale – September 6th