In a significant move, Itau Unibanco Holding S.A. has reduced its stake in Tesla, Inc. (NASDAQ: TSLA) by 78.7% during the second quarter of 2023. According to a filing with the Securities and Exchange Commission (SEC), the firm sold 91,833 shares, leaving it with 24,840 shares. As of the latest reporting period, the remaining holdings were valued at approximately $7.89 million.
Several other institutional investors have also adjusted their positions in Tesla recently. Chelsea Counsel Co. increased its stake by 59.7% in the first quarter, now holding 107 shares valued at $28,000 after acquiring an additional 40 shares. LGT Financial Advisors LLC entered a new position in Tesla worth about $29,000 during the second quarter, while Evergreen Private Wealth LLC raised its position by 270.0%, owning 111 shares now valued at $35,000. Similarly, Glynn Capital Management LLC purchased a new stake worth around $35,000, and Pacific Center for Financial Services grew its stake by 44.7% in the first quarter, now holding 149 shares valued at $39,000. Overall, institutional investors now own 66.20% of Tesla’s stock.
Insider Transactions and Recent Performance
Additionally, recent insider trading activity provides further context. Senior Vice President Xiaotong Zhu sold 20,000 shares on September 11, 2023, at an average price of $363.75, resulting in a total transaction of $7.28 million. After this transaction, Zhu holds 47,600 shares worth approximately $17.31 million, marking a 29.59% decrease in their ownership. Chief Financial Officer Vaibhav Taneja also sold 2,606 shares on September 8, 2023, for about $918,302. Post-transaction, Taneja owns 9,856 shares valued at approximately $3.47 million, a 20.91% reduction in his stake.
In total, insiders have sold 202,606 shares worth around $75.59 million over the last 90 days, with company insiders now owning 19.90% of Tesla’s stock.
Tesla’s Financial Performance and Analysts’ Outlook
Tesla’s latest quarterly earnings report, released on October 23, 2023, revealed an earnings per share (EPS) of $0.50, exceeding analysts’ expectations of $0.48. The company reported a revenue of $28.10 billion, significantly surpassing the forecast of $24.98 billion. Year-over-year, revenue rose by 11.6%, although EPS declined from $0.72 in the same quarter of the previous year. Analysts project Tesla will post an EPS of $2.56 for the current fiscal year.
Brokerage firms have varying views on Tesla’s stock. President Capital raised its target price from $373.00 to $529.00 with a “buy” rating, while Needham & Company LLC maintains a “hold” rating. Guggenheim has a “sell” rating with a target price of $175.00, and Wall Street Zen upgraded its rating from “sell” to “hold.” Wedbush reaffirmed an “outperform” rating with a target price of $600.00. Overall, Tesla has an average rating of “Hold” with a target price of $393.61, according to data from MarketBeat.com.
Tesla, Inc. continues to design, develop, manufacture, lease, and sell electric vehicles and energy generation and storage systems across the globe, operating primarily in two segments: Automotive and Energy Generation and Storage.
