Zacks Investment Research Upgrades Tesla (TSLA) to “Strong-Buy”

Zacks Investment Research upgraded shares of Tesla (NASDAQ:TSLA) from a hold rating to a strong-buy rating in a research report sent to investors on Tuesday morning. The firm currently has $381.00 target price on the electric vehicle producer’s stock.

According to Zacks, “In third-quarter 2018, Tesla’s earnings per share and revenues surpassed the Zacks Consensus Estimates. Also, both earnings and revenues improved year over year. In third-quarter 2018, Tesla produced 80,142 vehicles. This included 53,239 Model 3s, and 26,903 Model S and Model X vehicles. Deliveries to customers amounted to 55,840 Model 3 along with 27,660 Model S and X. These numbers are close to estimates and indicate that the company is making good progress despite hurdles. The company is focusing to grow its energy storage deployment and aims to deploy at least three times of what is deployed in 2017. Over the past six months, shares of Tesla outperformed the industry it belongs to. Moreover, over the past one month, the Zacks Consensus Estimates for both the current quarter and current year earnings are moving upwards.”

TSLA has been the subject of several other reports. Jefferies Financial Group upped their target price on shares of Tesla from $250.00 to $360.00 and gave the company a neutral rating in a research note on Wednesday, August 8th. Nomura restated a neutral rating and issued a $450.00 price objective (up previously from $400.00) on shares of Tesla in a research note on Tuesday, September 11th. Morgan Stanley set a $291.00 price objective on shares of Tesla and gave the company a neutral rating in a research note on Monday, August 27th. JMP Securities restated a buy rating and issued a $412.00 price objective on shares of Tesla in a research note on Thursday, October 25th. Finally, Evercore ISI set a $299.00 price objective on shares of Tesla and gave the company a hold rating in a research note on Thursday, October 4th. Thirteen equities research analysts have rated the stock with a sell rating, fourteen have issued a hold rating, thirteen have assigned a buy rating and one has issued a strong buy rating to the company’s stock. The stock presently has a consensus rating of Hold and a consensus price target of $319.79.

NASDAQ:TSLA opened at $331.13 on Tuesday. The firm has a market cap of $56.45 billion, a P/E ratio of -28.84 and a beta of 0.84. Tesla has a one year low of $244.59 and a one year high of $387.46. The company has a quick ratio of 0.37, a current ratio of 0.73 and a debt-to-equity ratio of 2.01.

Tesla (NASDAQ:TSLA) last released its earnings results on Wednesday, October 24th. The electric vehicle producer reported $2.90 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of ($1.77) by $4.67. The firm had revenue of $6.82 billion during the quarter, compared to analysts’ expectations of $5.67 billion. Tesla had a negative net margin of 10.22% and a negative return on equity of 34.62%. As a group, analysts forecast that Tesla will post -5.09 earnings per share for the current fiscal year.

In other Tesla news, CEO Elon Musk bought 29,844 shares of Tesla stock in a transaction dated Monday, October 29th. The shares were bought at an average price of $334.98 per share, with a total value of $9,997,143.12. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Jerome M. Guillen sold 1,000 shares of the firm’s stock in a transaction dated Monday, October 1st. The shares were sold at an average price of $306.00, for a total transaction of $306,000.00. Following the completion of the transaction, the insider now directly owns 8,598 shares in the company, valued at approximately $2,630,988. The disclosure for this sale can be found here. 22.80% of the stock is currently owned by company insiders.

Several large investors have recently made changes to their positions in the stock. Summit Trail Advisors LLC raised its position in shares of Tesla by 7.3% in the 2nd quarter. Summit Trail Advisors LLC now owns 2,448 shares of the electric vehicle producer’s stock valued at $840,000 after acquiring an additional 166 shares during the period. Accredited Investors Inc. raised its position in shares of Tesla by 26.4% in the 3rd quarter. Accredited Investors Inc. now owns 813 shares of the electric vehicle producer’s stock valued at $215,000 after acquiring an additional 170 shares during the period. Flagship Harbor Advisors LLC raised its position in shares of Tesla by 9.1% in the 2nd quarter. Flagship Harbor Advisors LLC now owns 2,392 shares of the electric vehicle producer’s stock valued at $820,000 after acquiring an additional 199 shares during the period. Livforsakringsbolaget Skandia Omsesidigt raised its position in shares of Tesla by 9.8% in the 2nd quarter. Livforsakringsbolaget Skandia Omsesidigt now owns 2,231 shares of the electric vehicle producer’s stock valued at $766,000 after acquiring an additional 200 shares during the period. Finally, First Mercantile Trust Co. raised its holdings in Tesla by 5.0% during the 2nd quarter. First Mercantile Trust Co. now owns 4,200 shares of the electric vehicle producer’s stock worth $1,440,000 after buying an additional 200 shares during the period. Institutional investors and hedge funds own 62.15% of the company’s stock.

Tesla Company Profile

Tesla, Inc engages in the design, development, manufacture, and sale of fully electric vehicles, energy generation and storage systems. It also provides vehicle service centers, supercharger station, and self-driving capability. The firm operates through Automotive, and Energy Generation and Storage segments.

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