Stellantis (NYSE:STLA) Shares Gap Down - Time to Sell?

Key Points

• Stellantis shares fell 6.5%, opening at $4.49 after closing at $4.69, with the stock trading near $4.46.
• Positive developments include a reported 73% increase in Ram pickup sales, potential industry-wide fuel-economy compliance savings, and planned hands-free driving demonstrations with Wayve. However, flat U.S. quarterly sales, potential market-share losses to Asian competitors, and quality concerns remain risks.
• Analyst sentiment is largely cautious: Stellantis has an average “Reduce” rating, with 10 Holds and seven Sells versus two Strong Buys. The average price target is $7.45, while Piper Sandler set a $4.00 target and downgraded the stock to Underweight.

Stellantis N.V. (NYSE:STLA - Get Free Report) gapped down prior to trading on Friday. The stock had previously closed at $4.69, but opened at $4.49. Stellantis shares last traded at $4.4620, with a volume of 8,780,059 shares trading hands.

Stellantis News Roundup

Here are the key news stories impacting Stellantis this week:

• Positive Sentiment: Ram pickup sales reportedly jumped 73%, helping Stellantis rebound from a record low and supporting the company’s U.S. performance. Stock Market Today, Oct. 1: Stellantis Surges Off Record Low on Ram Pickup Sales Jump
• Positive Sentiment: Looser fuel-economy rules could reduce compliance costs across the auto industry by approximately $60.6 billion through 2031, potentially improving Stellantis’ cash flow and profitability, although the company’s specific savings were not provided. Automakers Eye $60.6B in Savings as Fuel Economy Rules Ease
• Positive Sentiment: Stellantis and Wayve plan to demonstrate hands-free, AI-powered driving in Fiat and Maserati vehicles, offering longer-term technology and product differentiation potential. Stellantis and Wayve to Demonstrate AI-Powered, Hands-Free Driving
• Neutral Sentiment: Stellantis reported flat U.S. third-quarter sales compared with the prior year, while year-to-date sales increased 3%. The results show modest progress but limited near-term momentum. Stellantis Reports Q3 Sales
• Neutral Sentiment: RBC Capital maintained a Hold rating and discussed a possible breakup of Stellantis, signaling that unlocking value may require major structural changes. RBC Capital Pitches the Case for Stellantis to Break Up
• Negative Sentiment: Analysts expect Detroit automakers to lose market share to Asian competitors as elevated gasoline prices increase demand for hybrids and fuel-efficient vehicles, a risk for Stellantis’ U.S. mix. Detroit Three Automakers Set to Lose Market Share to Asian Rivals
• Negative Sentiment: Reports of nearly 50 internal “war rooms” addressing early quality problems raise concerns about warranty costs, execution and brand reputation. Stellantis Quality Problems

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on the stock. TD Cowen restated a "hold" rating on shares of Stellantis in a report on Wednesday, August 26th. Citigroup reissued a "neutral" rating on shares of Stellantis in a report on Thursday, July 9th. Wall Street Zen upgraded Stellantis from a "strong sell" rating to a "sell" rating in a research note on Saturday, September 19th. Piper Sandler cut Stellantis from an "overweight" rating to an "underweight" rating and set a $4.00 price objective for the company. in a research report on Monday, July 27th. Finally, Sanford C. Bernstein downgraded Stellantis from a "market perform" rating to an "underperform" rating in a report on Friday, August 7th. Two investment analysts have rated the stock with a Strong Buy rating, ten have assigned a Hold rating and seven have issued a Sell rating to the company's stock. According to MarketBeat.com, Stellantis has an average rating of "Reduce" and an average price target of $7.45.

Stellantis Stock Down 6.5%

The stock has a market cap of $16.50 billion, a PE ratio of 11.24, a P/E/G ratio of 0.30 and a beta of 1.49. The business has a 50 day moving average of $5.27 and a 200-day moving average of $6.39. The company has a current ratio of 1.04, a quick ratio of 0.76 and a debt-to-equity ratio of 0.59.

Stellantis (NYSE:STLA - Get Free Report) last announced its earnings results on Tuesday, June 30th. The company reported $0.14 earnings per share (EPS) for the quarter. The business had revenue of $49.63 billion for the quarter. Equities research analysts predict that Stellantis N.V. will post 0.51 EPS for the current fiscal year.

Institutional Investors Weigh In On Stellantis

Hedge funds have recently made changes to their positions in the business. Bank of America Corp DE grew its stake in Stellantis by 84.7% in the 1st quarter. Bank of America Corp DE now owns 23,518,418 shares of the company's stock valued at $166,746,000 after acquiring an additional 10,783,370 shares during the last quarter. Franklin Resources Inc. raised its position in Stellantis by 122.8% during the fourth quarter. Franklin Resources Inc. now owns 18,753,235 shares of the company's stock worth $205,019,000 after acquiring an additional 10,337,920 shares during the last quarter. Banco Santander S.A. raised its position in Stellantis by 99.9% during the fourth quarter. Banco Santander S.A. now owns 19,046,160 shares of the company's stock worth $207,413,000 after acquiring an additional 9,520,576 shares during the last quarter. Renaissance Technologies LLC lifted its holdings in shares of Stellantis by 118.4% in the first quarter. Renaissance Technologies LLC now owns 3,365,143 shares of the company's stock valued at $23,540,000 after purchasing an additional 1,824,139 shares in the last quarter. Finally, Swiss National Bank lifted its holdings in shares of Stellantis by 26.8% in the first 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 in the last quarter. Institutional investors and hedge funds own 59.48% of the company's stock.

About Stellantis

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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