Mizuho Securities Co. Ltd. has cut its holdings in Tesla, Inc. (NASDAQ: TSLA) by 25.9% during the second quarter of 2023. The firm now owns 2,970 shares of the electric vehicle manufacturer, having sold 1,040 shares over the quarter. Tesla accounts for 3.4% of Mizuho’s investment portfolio, making it the firm’s 10th largest holding. At the end of the quarter, Mizuho’s stake in Tesla was valued at approximately $943,000.
This reduction in Tesla shares comes as various institutional investors adjust their positions in the company. For instance, Goldman Sachs Group Inc. significantly increased its stake by 322.1% in the first quarter, now holding 26,590,525 shares valued at around $6.89 billion after acquiring an additional 20,291,139 shares.
Nuveen LLC made a substantial entry by acquiring a new stake in Tesla worth approximately $3.25 billion. Meanwhile, Kingstone Capital Partners Texas LLC reported an astounding increase in its position by 581,880.5%, owning 6,436,704 shares valued at $2.04 billion after purchasing an additional 6,435,598 shares.
Vanguard Group Inc. also raised its stake by 1.8%, now holding 251,390,681 shares valued at around $79.86 billion. Additionally, Amundi increased its holdings by 29.4% in the first quarter, now owning 16,771,882 shares worth about $4.48 billion. Collectively, institutional investors and hedge funds own 66.20% of Tesla’s stock.
Analysts Reassess Tesla’s Market Position
Recent reports from analysts have resulted in fluctuating price targets for Tesla shares. For instance, Deutsche Bank Aktiengesellschaft raised its target price from $440.00 to $470.00, maintaining a “buy” rating as of November 3, 2023. Conversely, UBS Group retained a “sell” rating, while Stifel Nicolaus increased its target price from $483.00 to $508.00.
In a contrasting move, CICC Research adjusted its price target from $360.00 to $450.00, giving Tesla an “outperform” rating. The Goldman Sachs Group lowered its price objective from $425.00 to $400.00, assigning a “neutral” rating. Overall, analysts’ ratings reveal one Strong Buy, twenty-one Buy, twelve Hold, and ten Sell ratings, leading to an average rating of “Hold” with a consensus price target of $394.31.
Insider Transactions Raise Eyebrows
In other developments, insider trading activity has also been notable. Senior Vice President Xiaotong Zhu sold 20,000 shares on September 11, 2023, at an average price of $363.75, totaling $7,275,000. Following this transaction, Zhu held 47,600 shares valued at approximately $17.31 million, marking a 29.59% decrease in their position.
Additionally, Director James R. Murdoch sold 120,000 shares on August 26, 2023, for about $42.03 million at an average price of $350.29. After this sale, Murdoch holds 697,031 shares, valued at around $244.16 million, reflecting a 14.69% decrease in ownership. Over the last 90 days, insiders have sold a total of 202,606 shares valued at approximately $75.59 million. Currently, corporate insiders own 19.90% of Tesla’s stock.
As of today, Tesla shares opened at $403.82. The company has experienced a 52-week low of $214.25 and a high of $488.54. With a market capitalization of $1.34 trillion, Tesla’s financial metrics include a debt-to-equity ratio of 0.07 and a current ratio of 2.07. The most recent earnings report revealed earnings per share of $0.50, exceeding analysts’ expectations, alongside a quarterly revenue of $28.10 billion.
Looking ahead, analysts forecast that Tesla, Inc. will post earnings per share of 2.56 for the current year. Tesla continues to be a significant player in the electric vehicle market, developing and selling electric vehicles and energy products across the globe.
