Tesla (NASDAQ:TSLA) Trading Down 5.2% Following Analyst Downgrade

Tesla (NASDAQ:TSLA) Trading Down 5.2% Following Analyst Downgrade

  • 20.03.2025 05:33
  • etfdailynews.com
  • Keywords: Tesla

Tesla shares dropped 5.2% after a Royal Bank of Canada downgrade, lowering its price target to $320 from $440. Insiders have sold over $166 million in stock over the past three months.

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Estimated market influence

Tesla

Tesla

Negativesentiment_dissatisfied
Analyst rating: Neutral

Analyst downgrade led to stock price drop and insider selling.

Context

Analysis of Tesla (NASDAQ:TSLA) Trading Performance and Business Insights

Key Stock Movement

  • Stock Price Drop: TSLA shares fell 5.2% during mid-day trading.
  • Price Target Adjustment: Royal Bank of Canada lowered their price target from $440.00 to $320.00, maintaining an "outperform" rating.
  • Trading Volume: Approximately 42.96 million shares traded, down 53% from average daily volume of 90.61 million shares.

Market Sentiment and Analyst Ratings

  • Consensus Rating: Tesla has a consensus rating of "Hold" with an average price target of $321.12.
  • Analyst Activity:
    • Goldman Sachs: Reaffirmed "cautious" rating.
    • Stifel Nicolaus: Lowered price target from $492.00 to $474.00, maintained "buy."
    • Morgan Stanley: Reaffirmed "top pick," price target $430.00.
    • Barclays: Raised price target from $270.00 to $325.00, maintained "equal weight."
    • Glj Research: Reaffirmed "buy" rating.

Insider Transactions

  • Director Robyn M. Denholm:
    • Sold 112,390 shares at an average price of $384.04.
    • Total transaction value: $43,162,255.60.
    • Post-sale ownership: 85,000 shares (56.94% decrease).
  • Director James R. Murdoch:
    • Sold 54,776 shares at an average price of $240.79.
    • Total transaction value: $13,189,513.04.
    • Post-sale ownership: 477,011 shares (10.30% decrease).
  • Total Insider Sales: 477,228 shares in the last ninety days, valued at $166,849,043.
  • Insider Ownership: 20.70% of the stock is owned by company insiders.

Institutional Trading

  • Vanguard Group Inc.:
    • Increased position by 1.5%, now owning 243,193,181 shares valued at $98.21 billion.
  • Geode Capital Management LLC:
    • Increased position by 2.8%, now owning 61,011,604 shares valued at $24.57 billion.
  • Norges Bank:
    • Acquired new stake valued at approximately $14.42 billion.
  • FMR LLC:
    • Increased position by 40.1%, now owning 34,661,400 shares valued at $13.997 billion.
  • Northern Trust Corp:
    • Increased position by 21.6%, now owning 28,579,615 shares valued at $11.54 billion.
  • Institutional Ownership: 66.20% of the stock is owned by institutional investors and hedge funds.

Financial Metrics

  • Key Ratios:
    • Current Ratio: 2.02
    • Quick Ratio: 1.61
    • Debt-to-Equity Ratio: 0.08
  • Market Capitalization: $758.65 billion.
  • P/E Ratio: 115.62.
  • PEG Ratio: 5.86.
  • Beta: 2.50.
  • 50-Day Moving Average: $341.28.
  • 200-Day Moving Average: $320.02.

Earnings Performance

  • Q4 Earnings:
    • EPS: $0.66 (missed consensus estimate of $0.74).
    • Net Margin: 7.26%.
    • Return on Equity: 10.31%.

Business Overview

  • Segments:
    • Automotive: Electric vehicles, regulatory credits, and after-sales services.
    • Energy Generation and Storage: Solar products and energy storage systems.
  • Geographic Presence: Operations in the U.S., China, and internationally.

This analysis highlights significant market trends, financial performance, and strategic considerations impacting Tesla. The stock's volatility reflects broader market sentiment and analyst expectations, while insider sales raise questions about internal confidence. Institutional buying suggests long-term investor interest despite near-term challenges.