Stellantis (NYSE:STLA) Reaches New 52-Week Low After Analyst Downgrade

Key Points

• Stellantis shares hit a new 52-week low, falling to $4.24 after Freedom Broker cut its price target from $7.50 to $6.80, though it maintained a buy rating.
• Analyst sentiment is broadly cautious: Stellantis has an average “Reduce” rating and a consensus target price of $7.38, with several firms recently downgrading the stock.
• Operational concerns include a 1% year-over-year decline in third-quarter shipments, a 12% drop in North American volumes and excess production capacity in Europe, despite plans to launch lower-cost EVs and improve platform efficiency.

Shares of Stellantis N.V. (NYSE:STLA - Get Free Report) hit a new 52-week low during trading on Wednesday after Freedom Broker lowered their price target on the stock from $7.50 to $6.80. Freedom Broker currently has a buy rating on the stock. Stellantis traded as low as $4.24 and last traded at $4.2750, with a volume of 6,844,658 shares. The stock had previously closed at $4.45.

STLA has been the subject of several other research reports. UBS Group downgraded shares of Stellantis from a "buy" rating to a "neutral" rating in a report on Monday, August 3rd. Piper Sandler lowered Stellantis from an "overweight" rating to an "underweight" rating and set a $4.00 target price on the stock. in a research report on Monday, July 27th. TD Cowen restated a "hold" rating on shares of Stellantis in a research note on Wednesday, August 26th. HSBC lowered Stellantis from a "hold" rating to a "reduce" rating in a research report on Friday, July 3rd. Finally, Wall Street Zen raised Stellantis from a "strong sell" rating to a "sell" rating in a research note on Saturday, September 19th. Two research analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating, ten have given a Hold rating and seven have assigned a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Reduce" and a consensus target price of $7.38.

More Stellantis News

Here are the key news stories impacting Stellantis this week:

• Positive Sentiment: Stellantis will begin deploying its STLA One vehicle platform with Peugeot in France. A common platform could reduce development costs, accelerate new-model launches and improve manufacturing efficiency. Stellantis to start deployment of STLA One platform with Peugeot brand in France
• Positive Sentiment: The automaker unveiled six concepts, including lower-cost electric vehicles, at the Paris Motor Show. Affordable EVs could help revive European sales and improve Stellantis’ competitiveness against BYD, Tesla and Renault’s Dacia. Stellantis reveals six concepts on eve of Paris show
• Positive Sentiment: Freedom Broker maintained a “buy” rating, although it reduced its price target from $7.50 to $6.80. The revised target still implies substantial upside from the referenced share price, providing some analyst support. Stellantis price target and rating update
• Neutral Sentiment: Stellantis is exploring how much technology from Chinese partner Leapmotor will be incorporated into European vehicles. The relationship may improve EV cost and technology competitiveness, but it also raises questions about regulatory, brand and supply-chain exposure. Stellantis and Leapmotor Chinese technology
• Neutral Sentiment: Management said the auto industry is becoming more regional and expects the U.S. eventually to shift toward EVs, while calling the current U.S. EV market a bubble driven heavily by regulation. Stellantis also said separating its European and U.S. brands is not practical. Stellantis CEO on regional auto markets and EVs
• Negative Sentiment: Third-quarter consolidated shipments fell 1% year over year to approximately 1.3 million vehicles. European battery-electric growth was offset by lower North American volumes following planned production shutdowns. North American shipments dropped 12%, particularly affecting Jeep Grand Cherokee and Compass production. Stellantis Q3 shipments fall
• Negative Sentiment: CEO Antonio Filosa acknowledged that Europe has too much production capacity and is pursuing agreements to avoid plant closures. The comments highlight continuing utilization, restructuring and profitability risks. Stellantis excess European capacity

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in STLA. Bank of America Corp DE grew its holdings in shares of Stellantis by 84.7% during the first quarter. Bank of America Corp DE now owns 23,518,418 shares of the company's stock worth $166,746,000 after purchasing an additional 10,783,370 shares during the last quarter. Renaissance Technologies LLC increased its position in shares of Stellantis by 118.4% during the first quarter. Renaissance Technologies LLC now owns 3,365,143 shares of the company's stock worth $23,540,000 after purchasing an additional 1,824,139 shares in the last quarter. Swiss National Bank lifted its holdings in shares of Stellantis by 26.8% in the 1st quarter. Swiss National Bank now owns 6,981,716 shares of the company's stock valued at $48,774,000 after purchasing an additional 1,477,637 shares during the last quarter. Alberta Investment Management Corp purchased a new stake in shares of Stellantis in the 4th quarter valued at about $15,855,000. Finally, Chou Associates Management Inc. acquired a new stake in shares of Stellantis in the 2nd quarter valued at about $8,003,000. Hedge funds and other institutional investors own 59.48% of the company's stock.

Stellantis Trading Down 3.9%

The stock has a market capitalization of $16.09 billion, a price-to-earnings ratio of 10.96, a PEG ratio of 0.35 and a beta of 1.49. The company has a debt-to-equity ratio of 0.59, a quick ratio of 0.76 and a current ratio of 1.04. The business has a 50-day moving average of $5.07 and a 200-day moving average of $6.27.

Stellantis (NYSE:STLA - Get Free Report) last released its quarterly earnings results on Tuesday, June 30th. The company reported $0.14 earnings per share (EPS) for the quarter. The firm had revenue of $49.63 billion for the quarter. As a group, research analysts forecast that Stellantis N.V. will post 0.44 EPS for the current year.

Stellantis Company Profile

Stellantis N.V. is a global automotive company that designs, engineers, manufactures and sells passenger cars, light commercial vehicles and related mobility products and services. Its portfolio includes brands such as Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot and Ram.

The company serves customers across North America, Europe, South America, the Middle East and Africa, and other international markets. Its operations include vehicle manufacturing and distribution, financing and leasing, aftermarket parts and services, and the development of connected, electric and software-enabled vehicle technologies.

Stellantis was created in 2021 through the merger of Fiat Chrysler Automobiles and France's Groupe PSA.

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