Tesla (NASDAQ:TSLA) Shares Down 3.2% - Here's Why

During trading on Thursday, shares of Tesla, Inc. (NASDAQ:TSLA) fell by 3.2%. The stock reached a low of $412.66 and closed at $414.59. Notably, about 27,683,978 shares were traded that day, reflecting a sharp decline of 64% compared to its average daily volume of 76,062,891 shares. The prior closing price was $428.22.

Recent Analyst Ratings

TSLA has featured in numerous recent research reports. On November 18th, Wedbush reaffirmed its "outperform" rating, setting a price target of $400. Similarly, KGI Securities upgraded the stock from "neutral" to "outperform" with a target price of $276 on October 24th. Barclays raised its price target from $270 to $325, while New Street Research increased its rating from "neutral" to "buy" with a target of $460. Furthermore, on October 24th, Canaccord Genuity Group raised its target from $254 to $278, maintaining a "buy" rating. Currently, analysts' ratings show nine with a sell rating, fifteen suggesting a hold, sixteen advising buy, and one strongly buy rating. According to MarketBeat.com, the average rating for TSLA is "Hold" with a consensus target price of $299.33.

Company Performance Metrics

Tesla holds a market capitalization of $1.37 trillion, a price-to-earnings ratio of 116.85, and a PEG ratio of 6.53, with a beta of 2.30. Its debt-to-equity ratio stands at 0.08, with a quick ratio of 1.37 and a current ratio of 1.84. The company’s 50-day moving average price is $387.84, while the 200-day moving average price is $286.58.

Tesla's last quarterly earnings report, released on October 23rd, showed an EPS of $0.72, surpassing the consensus estimate of $0.58 by $0.14. The total revenue for the quarter was $25.18 billion, slightly below the analyst forecast of $25.47 billion. The firm had a net margin of 13.07% and a return on equity of 10.24%, achieving a year-over-year revenue growth of 7.8%. Analysts also estimate that Tesla will report an EPS of 1.99 for the ongoing fiscal year.

Insider Trading Activities

Recently, director Kathleen Wilson-Thompson sold 100,000 shares at an average price of $346.02, with the total sale valued at $34,602,000. Following this transaction, she owns 5,400 shares, now valued at approximately $1,868,508. This sale is equivalent to a 94.88% reduction in her holdings. Moreover, director Kimbal Musk sold 60,500 shares on November 1st at an average price of $250.23, totaling about $15,138,915. Post-transaction, he holds around 1,563,220 shares worth about $391,164,540. Over the past ninety days, insiders sold a total of 621,886 shares worth $213,451,751, with insider ownership at 20.70%.

Institutional Investments

Many hedge funds are adjusting their positions in Tesla. Transcendent Capital Group acquired a stake in Tesla worth approximately $29,000 in the third quarter. Clean Yield Group increased its holdings by 60%, now owning 128 shares valued at $33,000 after obtaining an additional 48 shares. Abich Financial Wealth Management LLC enhanced its position by 168.8%, owning 129 shares now worth $26,000, following an additional acquisition of 81 shares. Other investors like Peterson Financial Group also acquired new stakes in Tesla, estimated around $35,000. Overall, institutional and hedge fund investors own about 66.20% of Tesla's stocks.

About Tesla

Tesla, Inc designs and manufactures electric vehicles and energy generation and storage systems for markets in the United States, China, and beyond. The company operates in two key segments: Automotive and Energy Generation and Storage. Its Automotive segment includes electric vehicles, sales of automotive regulatory credits, non-warranty after-sales vehicles, used vehicles, body shop services, supercharging, retail merchandise, and vehicle insurance services.

Investment Considerations

Before considering an investment in Tesla, it's essential to review the research from top analysts. MarketBeat has identified five stocks viewed as better investment options currently compared to TSLA.

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