Zacks Investment Research Downgrades Tesla (TSLA) to Sell

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 several other reports. Oppenheimer reissued a “hold” rating on shares of Tesla in a research note on Monday, October 16th. Piper Jaffray Companies set a $386.00 target price on Tesla and gave the stock a “buy” rating in a research note on Monday, October 16th. JPMorgan Chase & Co. cut their target price on Tesla from $200.00 to $195.00 and set an “underweight” rating on the stock in a research note on Friday, October 20th. Vetr cut Tesla from a “sell” rating to a “strong sell” rating and set a $292.39 target price on the stock. in a research note on Monday, October 23rd. Finally, Robert W. Baird reissued a “buy” rating and issued a $411.00 target price on shares of Tesla in a research note on Wednesday, October 25th. Thirteen investment analysts have rated the stock with a sell rating, eleven have given a hold rating and twelve have assigned a buy rating to the stock. Tesla has an average rating of “Hold” and an average price target of $324.20.

Tesla (TSLA) opened at $322.31 on Tuesday. Tesla has a 12 month low of $242.01 and a 12 month high of $389.61. The stock has a market capitalization of $54,170.00, a PE ratio of -27.34 and a beta of 0.97. The company has a debt-to-equity ratio of 1.66, a quick ratio of 0.71 and a current ratio of 1.09.

Tesla (NASDAQ:TSLA) last announced its quarterly earnings data on Wednesday, February 7th. The electric vehicle producer reported ($3.04) earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of ($3.12) by $0.08. Tesla had a negative return on equity of 32.11% and a negative net margin of 16.68%. The firm had revenue of $3.29 billion for the quarter, compared to analysts’ expectations of $3.26 billion. During the same period last year, the firm earned ($0.69) earnings per share. The company’s revenue for the quarter was up 43.9% compared to the same quarter last year. sell-side analysts anticipate that Tesla will post -15.15 EPS for the current fiscal year.

In other news, VP John Douglas Field sold 1,400 shares of Tesla stock in a transaction that occurred 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 completion of the transaction, the vice president now directly owns 21,528 shares in the company, valued at $7,333,943.76. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Eric Branderiz sold 801 shares of Tesla stock in a transaction that occurred on Wednesday, January 24th. The shares were sold at an average price of $354.58, for a total transaction of $284,018.58. Following the transaction, the vice president now owns 1,287 shares of the company’s stock, valued at $456,344.46. The disclosure for this sale can be found here. Insiders have sold 10,231 shares of company stock valued at $3,292,431 over the last quarter. Company insiders own 23.10% of the company’s stock.

Several hedge funds have recently added to or reduced their stakes in the company. Jennison Associates LLC lifted its holdings in shares of Tesla by 17.1% during the fourth quarter. Jennison Associates LLC now owns 3,382,553 shares of the electric vehicle producer’s stock valued at $1,053,158,000 after purchasing an additional 494,761 shares during the last quarter. Bamco Inc. NY lifted its holdings in shares of Tesla by 0.6% during the fourth quarter. Bamco Inc. NY now owns 1,612,051 shares of the electric vehicle producer’s stock valued at $501,912,000 after purchasing an additional 10,040 shares during the last quarter. American Century Companies Inc. lifted its holdings in shares of Tesla by 8.9% during the fourth quarter. American Century Companies Inc. now owns 655,149 shares of the electric vehicle producer’s stock valued at $203,981,000 after purchasing an additional 53,279 shares during the last quarter. Sumitomo Mitsui Asset Management Company LTD lifted its holdings in shares of Tesla by 77.1% during the fourth quarter. Sumitomo Mitsui Asset Management Company LTD now owns 635,692 shares of the electric vehicle producer’s stock valued at $197,922,000 after purchasing an additional 276,781 shares during the last quarter. Finally, Janus Henderson Group PLC lifted its holdings in shares of Tesla by 126.6% during the third quarter. Janus Henderson Group PLC now owns 547,072 shares of the electric vehicle producer’s stock valued at $186,601,000 after purchasing an additional 305,596 shares during the last quarter. Hedge funds and other institutional investors 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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