Tesla (NASDAQ:TSLA) Shares Down 1.2% - Should You Sell?

Key Points

• Tesla's shares fell by 1.2%, trading last at $331.00, with a notable decrease in trading volume of 71% compared to its average.
• Recent analyst ratings reflect mixed sentiment, with a consensus rating of "Hold" and target prices ranging from $280.00 to $410.00.
• Tesla's quarterly earnings report showed missed expectations, with earnings per share of $0.40 against a forecast of $0.43, and revenue declining year-over-year by 11.8%.

Tesla, Inc. (NASDAQ:TSLA - Get Free Report) was down 1.2% during trading on Tuesday . The company traded as low as $331.71 and last traded at $331.00. Approximately 30,705,331 shares traded hands during trading, a decline of 71% from the average daily volume of 105,110,078 shares. The stock had previously closed at $335.16.

Analyst Ratings Changes

A number of equities research analysts have recently commented on TSLA shares. The Goldman Sachs Group reiterated a "neutral" rating on shares of Tesla in a research note on Sunday. Mizuho decreased their price target on Tesla from $390.00 to $375.00 and set an "outperform" rating on the stock in a research report on Tuesday, July 8th. Morgan Stanley reissued an "overweight" rating and set a $410.00 price objective on shares of Tesla in a report on Friday, June 6th. Piper Sandler reaffirmed an "overweight" rating and issued a $400.00 target price on shares of Tesla in a research note on Tuesday, June 10th. Finally, Truist Financial set a $280.00 target price on Tesla in a research note on Tuesday, April 22nd. One analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, fifteen have issued a Hold rating and nine have assigned a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $303.31.

Tesla Stock Performance

The stock has a market cap of $1.07 trillion, a P/E ratio of 190.70, a PEG ratio of 11.49 and a beta of 2.33. The company has a debt-to-equity ratio of 0.07, a current ratio of 2.04 and a quick ratio of 1.55. The firm's 50-day moving average price is $320.95 and its 200-day moving average price is $304.09.

Tesla (NASDAQ:TSLA - Get Free Report) last released its quarterly earnings data on Wednesday, July 23rd. The electric vehicle producer reported $0.40 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.43 by ($0.03). The company had revenue of $22.50 billion for the quarter, compared to the consensus estimate of $23.18 billion. Tesla had a net margin of 6.54% and a return on equity of 7.98%. The company's quarterly revenue was down 11.8% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.52 EPS. Sell-side analysts expect that Tesla, Inc. will post 2.56 earnings per share for the current fiscal year.

Insider Activity

In other Tesla news, Director Ira Matthew Ehrenpreis sold 477,572 shares of the business's stock in a transaction on Tuesday, May 27th. The shares were sold at an average price of $357.30, for a total transaction of $170,636,475.60. Following the transaction, the director owned 855,394 shares in the company, valued at $305,632,276.20. The trade was a 35.83% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Kimbal Musk sold 91,588 shares of the business's stock in a transaction on Tuesday, May 27th. The shares were sold at an average price of $357.39, for a total transaction of $32,732,635.32. Following the transaction, the director owned 1,463,220 shares in the company, valued at $522,940,195.80. This trade represents a 5.89% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 599,724 shares of company stock worth $213,126,501. 20.70% of the stock is currently owned by insiders.

Institutional Trading of Tesla

A number of hedge funds have recently added to or reduced their stakes in TSLA. Cherry Tree Wealth Management LLC increased its holdings in shares of Tesla by 86.3% during the first quarter. Cherry Tree Wealth Management LLC now owns 95 shares of the electric vehicle producer's stock valued at $25,000 after acquiring an additional 44 shares in the last quarter. First PREMIER Bank increased its holdings in Tesla by 79.2% in the 1st quarter. First PREMIER Bank now owns 95 shares of the electric vehicle producer's stock worth $25,000 after buying an additional 42 shares during the period. Chapman Financial Group LLC acquired a new position in Tesla in the 2nd quarter worth approximately $26,000. Newton One Investments LLC increased its holdings in Tesla by 250.0% in the 1st quarter. Newton One Investments LLC now owns 105 shares of the electric vehicle producer's stock worth $27,000 after buying an additional 75 shares during the period. Finally, Arcadia Investment Management Corp MI acquired a new position in Tesla in the 1st quarter worth approximately $27,000. 66.20% of the stock is owned by hedge funds and other institutional investors.

About Tesla

Tesla, Inc designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage. The Automotive segment offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty after-sales vehicle, used vehicles, body shop and parts, supercharging, retail merchandise, and vehicle insurance services.

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