Itau Unibanco Holding S.A. has significantly reduced its stake in Tesla, Inc. (NASDAQ: TSLA) by an impressive 78.7% during the second quarter of 2023. According to the company’s latest 13F filing with the Securities and Exchange Commission (SEC), Itau Unibanco now holds 24,840 shares of the electric vehicle manufacturer after selling 91,833 shares in this timeframe. The remaining holdings were valued at approximately $7.89 million at the end of the reporting period.
The decision to trim its holdings comes amid a broader trend in which other institutional investors have also adjusted their positions in Tesla. For instance, Kingsview Wealth Management LLC increased its stake by 4.2%, acquiring an additional 1,992 shares to bring its total to 49,526 shares, valued at $15.73 million. Similarly, Cornerstone Advisors LLC raised its position by 4.1%, now owning 143,600 shares worth about $45.62 million after purchasing an additional 5,700 shares. Citizens Financial Group Inc. RI lifted its holdings by 13.2%, now possessing 81,777 shares valued at $25.98 million.
Moreover, the Ontario Teachers Pension Plan Board entered the fray by purchasing a new stake worth approximately $1.24 million in Tesla during the same quarter. Collaborative Wealth Management Inc. also increased its holdings by 4.6%, acquiring an additional 126 shares and bringing its total to 2,851 shares, valued at $906,000. Overall, hedge funds and institutional investors own about 66.2% of Tesla’s stock.
Analysts Weigh in on Tesla’s Market Position
Recent evaluations from Wall Street analysts reflect a range of sentiments regarding Tesla’s stock. DZ Bank recently reiterated a “sell” rating, while Piper Sandler increased its price target from $400.00 to $500.00 and maintained an “overweight” rating. Cantor Fitzgerald set a price objective of $510.00, and HSBC raised its target price from $120.00 to $127.00. Bank of America also adjusted its price target for Tesla, increasing it from $341.00 to $471.00 and assigning a “neutral” rating.
In total, one analyst has issued a Strong Buy rating for Tesla, while twenty-one have given it a Buy rating, twelve a Hold rating, and ten a Sell rating. According to MarketBeat.com, Tesla currently holds a consensus rating of “Hold” with a target price of $393.61.
Tesla’s Recent Performance and Insider Activity
On October 23, 2023, Tesla’s stock opened at $404.35. The company maintains a debt-to-equity ratio of 0.07, with a quick ratio of 1.67 and a current ratio of 2.07. The stock has a fifty-day moving average of $429.67 and a two-hundred-day average of $360.78, alongside a market capitalization of $1.34 trillion. The stock has fluctuated between a fifty-two week low of $214.25 and a high of $488.54.
In its most recent earnings report on October 23, Tesla announced earnings of $0.50 per share, surpassing the consensus estimate of $0.48. The company’s revenue was reported at $28.10 billion, exceeding estimates of $24.98 billion. Tesla’s net margin stood at 5.51% with a return on equity of 6.61%, reflecting an 11.6% year-over-year revenue increase.
Insider trading activity has also been notable. CFO Vaibhav Taneja sold 2,606 shares on September 8 at an average price of $352.38, totaling approximately $918,302.28. Following this transaction, Taneja’s remaining holdings were valued at around $3.47 million, indicating a 20.91% decrease in his position. Director James R. Murdoch also sold 120,000 shares on August 26 for a total of about $42.03 million, reducing his stake by 14.69%.
Over the past 90 days, insiders sold 202,606 shares worth approximately $75.59 million. Currently, insiders hold about 19.90% of Tesla’s stock.
Tesla, Inc. designs and manufactures electric vehicles and energy solutions in the United States, China, and worldwide. Operating in two segments—Automotive and Energy Generation and Storage—the company continues to adapt to evolving market conditions while facing varied investor sentiments.
