Recent institutional investor activity has highlighted the fluctuated sentiment surrounding Tesla, Inc. (NASDAQ:TSLA). According to recent filings with the Securities and Exchange Commission, several firms have adjusted their holdings, reflecting variations in confidence about the electric vehicle producer's future.
Artemis Investment Management LLP reported lifting its position by 36.1% during the fourth quarter, acquiring 32,512 additional shares to bring its total to 122,558 shares valued at approximately $49.5 million. Other hedge funds also showed significant changes, with World Investment Advisors LLC increasing its stake by an astounding 1,248.9%, now owning 199,229 shares worth about $52.1 million.
Destination Wealth Management and Vinva Investment Management Ltd both expanded their positions substantially during the same period. Destination raised its stake by 12.1%, reaching ownership of 12,597 shares valued at $3.3 million, whereas Vinva increased its holdings by 59.2% to 117,457 shares worth $30.6 million.
Another notable move came from MML Investors Services LLC, which raised its holdings by 3.3%, owning 309,382 shares valued at $80.9 million, and Oppenheimer & Co. Inc. lifted its stake by 1.2% with 144,482 shares valued at $37.8 million. According to data, 66.20% of Tesla's stock is owned by institutional investors, indicating strong institutional interest.
Price targets for Tesla have been adjusted by several analysts reflecting these investor activities. Evercore ISI elevated its price target from $195 to $275 and rated the stock 'in-line' with expectations. Meanwhile, global investment giant UBS raised its price target from $197 to $226, labeling it as 'sell'. Morgan Stanley's analysis was even more optimistic, boosting its target from $400 to $430, giving Tesla an 'overweight' rating.
Despite these varying opinions, market analysts appear to reach consensus, with the average stock rating being 'Hold' and predicted price targets clustering around $299.33. Notably, nine analysts graded Tesla with 'sell' ratings, and fifteen issued 'hold' ratings.
The recent stock performance of Tesla showed gains of 3.1%, closing at $426.50, with its market capitalization hitting $1.37 trillion. Tesla’s PE ratio stands at 116.85 with strong revenue generation reported at $25.2 billion, even as growth benchmarks indicated slight misses.
Insider trading has equally caught the eye of analysts. Kimbal Musk, Tesla's director, sold 60,500 shares on November 1, 2023, for about $15 million. This sale dropped his reported ownership stake by approximately 3.73%. CFO Vaibhav Taneja also sold 4,000 shares for just over $1 million on the same date, reflecting their confidence about the near-term value.
Over the past quarter, insiders sold around 621,886 shares valued at approximately $213.5 million, maintaining 20.70% of the company's stock. This trading activity raises questions about the company's immediate financial outlook, especially as the firm last registered quarterly earnings of $0.72 per share, topping analyst expectations.
Overall, Tesla has maintained its unique position as one of the most closely observed stocks on the market, with significant institutional interest reflective of broader trends within the electric vehicle sector. The interplay between investor action, analyst reports, and insider trading paints a complex picture of confidence and caution as Tesla navigates the highly competitive automotive space.