Tesla (TSLA) Cut to “Sell” at Zacks Investment Research

Tesla (NASDAQ:TSLA) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Tuesday.

According to Zacks, “Tesla incurred an adjusted loss of $3.04 per share in fourth-quarter 2017, narrower than the Zacks Consensus Estimate of a loss of $3.19. Revenues increased to $3.29 billion from $2.28 billion registered in fourth-quarter 2016. The figure came in lower than the Zacks Consensus Estimate of $3.30 billion. The company is making serious efforts to address Model 3 production bottlenecks and ramping up energy storage products. The company continues to target weekly Model 3 production rates of 2,500 by the end of first-quarter 2018 and 5,000 by the end of second-quarter 2018. Tesla is also focused on geographical expansions and acquisitions for growth. The company is also rapidly developing a network of superchargers. However, high research and development costs, low number of chargers and high requirement of capital expenditure are some headwinds.”

TSLA has been the topic of a number of other research reports. ValuEngine raised shares of Tesla from a “sell” rating to a “hold” rating in a research note on Wednesday, December 6th. UBS Group set a $195.00 price target on shares of Tesla and gave the company a “sell” rating in a research note on Friday. Sanford C. Bernstein set a $265.00 price target on shares of Tesla and gave the company a “hold” rating in a research note on Monday, November 13th. Royal Bank of Canada dropped their price target on shares of Tesla from $345.00 to $340.00 and set a “sector perform” rating on the stock in a research note on Thursday, November 2nd. Finally, Vetr raised shares of Tesla from a “strong sell” rating to a “sell” rating and set a $282.88 price target on the stock in a research note on Thursday, November 2nd. Thirteen analysts have rated the stock with a sell rating, ten have assigned a hold rating and thirteen have issued a buy rating to the stock. Tesla presently has an average rating of “Hold” and a consensus target price of $324.52.

Tesla (NASDAQ:TSLA) traded up $3.02 during trading hours on Tuesday, hitting $318.75. 2,670,000 shares of the stock traded hands, compared to its average volume of 6,060,000. The company has a debt-to-equity ratio of 1.66, a quick ratio of 0.71 and a current ratio of 1.09. The stock has a market cap of $53,570.00, a price-to-earnings ratio of -27.04 and a beta of 0.97. Tesla has a 52-week low of $242.01 and a 52-week high of $389.61.

Tesla (NASDAQ:TSLA) last released its quarterly earnings results on Wednesday, February 7th. The electric vehicle producer reported ($3.04) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($3.12) by $0.08. Tesla had a negative net margin of 16.68% and a negative return on equity of 32.11%. The firm had revenue of $3.29 billion for the quarter, compared to analysts’ expectations of $3.26 billion. During the same quarter last year, the company earned ($0.69) EPS. The firm’s revenue for the quarter was up 43.9% compared to the same quarter last year. equities research analysts forecast that Tesla will post -6.87 EPS for the current year.

In other Tesla news, VP John Douglas Field sold 1,400 shares of Tesla stock in a transaction on Wednesday, December 13th. The shares were sold at an average price of $340.67, for a total transaction of $476,938.00. Following the sale, the vice president now owns 21,528 shares of the company’s stock, valued at approximately $7,333,943.76. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, VP Eric Branderiz sold 1,736 shares of Tesla stock in a transaction on Monday, November 27th. The stock was sold at an average price of $313.25, for a total value of $543,802.00. Following the transaction, the vice president now owns 1,225 shares in the company, valued at approximately $383,731.25. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 10,231 shares of company stock worth $3,292,431. 23.10% of the stock is currently owned by corporate insiders.

Several hedge funds and other institutional investors have recently bought and sold shares of TSLA. Jennison Associates LLC raised its holdings in shares of Tesla by 17.1% during the 4th quarter. Jennison Associates LLC now owns 3,382,553 shares of the electric vehicle producer’s stock worth $1,053,158,000 after acquiring an additional 494,761 shares during the period. Janus Henderson Group PLC raised its holdings in shares of Tesla by 126.6% during the 3rd quarter. Janus Henderson Group PLC now owns 547,072 shares of the electric vehicle producer’s stock worth $186,601,000 after acquiring an additional 305,596 shares during the period. Sumitomo Mitsui Asset Management Company LTD raised its holdings in shares of Tesla by 77.1% during the 4th quarter. Sumitomo Mitsui Asset Management Company LTD now owns 635,692 shares of the electric vehicle producer’s stock worth $197,922,000 after acquiring an additional 276,781 shares during the period. Ariose Capital Management Ltd purchased a new position in shares of Tesla during the 3rd quarter worth $30,733,000. Finally, ARK Investment Management LLC raised its holdings in shares of Tesla by 122.1% during the 4th quarter. ARK Investment Management LLC now owns 140,900 shares of the electric vehicle producer’s stock worth $43,869,000 after acquiring an additional 77,471 shares during the period. Institutional investors and hedge funds own 57.49% of the company’s stock.

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Tesla Company Profile

Tesla, Inc, formerly Tesla Motors, Inc, designs, develops, manufactures and sells fully electric vehicles, and energy storage systems, as well as installs, operates and maintains solar and energy storage products. The Company operates through two segments: Automotive, and Energy generation and storage.

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