Considering Buying Tesla, Inc. (TSLA)? Read This First

Analysts at ROTH Capital, assumed coverage of Tesla, Inc. (NASDAQ:TSLA) with Neutral recommendation, according to their opinion released on November 01. Cascend Securities analysts bumped their recommendation on TSLA stock from Sell to Buy in a separate flash note to investors on October 25. Analysts at BofA/Merrill are sticking to their Underperform recommendation. However, on October 25, they lifted target price for these shares to $220 from $200. Analysts at BofA/Merrill, made their first call for the stock with a Underperform rating, according to a research note that dated back to October 25.

Tesla, Inc. (NASDAQ:TSLA) short sellers believe it will rise in price. The most recent short interest data has been released for the November 15th settlement date, which shows a -1,139,224 share decrease in total short interest for TSLA, to 28,792,194, a retreat of 3.81% since October 31st. Average daily volume for Tesla, Inc. at the November 15th settlement plunged to 6,547,759, as compared to 13,099,206 at the October 31st report. That brought days to cover to 4.397259, a 92.44% increase from the 2.28498 days to cover recorded at the prior short interest data release. You could look at analyst ratings. The average analyst recommendations at 3 suggests buying these shares. But the opinions of a small number of people, though sometimes influential, doesn’t always speak for the hundreds of thousands of traders on Wall Street.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Tesla, Inc. (NASDAQ:TSLA)’s prospects. The earliest insider trade took place on 12/03/2018. Guillen Jerome M parted with a total of 1 thousand shares of company at average share price of $360.28. The total for the sales was set at $360.28 thousand. After this transaction, the President, Automotive account balance stood at 7.86 thousand shares. The stock grew 0.77 percent since that insider sale. On 11/15/2018, Ahuja Deepak, CFO, sold 3.5 thousand shares at a price per share of $343.46. This removed 1.2 million shares from the insider’s fortune and the stock saw a 5.71 percent rally in value since the news became public. This transaction left 63.8 thousand shares in the CFO account. On 11/14/2018, Director Rice Linda Johnson performed a sale transaction worth $1.02 million. This sale at $340.68 each has eliminated 3 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 6.57 percent increase since the transaction was reported. The insider now is left with 0 thousand shares remaining in the account. Straubel Jeffrey B, who performs the Chief Technical Officer job, sold 15 thousand shares for $5.23 million. The disposal occurred on 11/07/2018 was priced at $348.44 per share. The share price soared 4.2 percent since the reporting date. Straubel Jeffrey B now left with a stake of 306.4 thousand TSLA stock worth $111.24 million after the insider selling.

Tesla, Inc. (TSLA) is expected to jump by -9.75 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $530-month high price target. This represents a whopping 45.98 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $316, which represents a return potential of -12.96 percent when compared to the closing price of the stock of $363.06 on Thursday, December 06. The lowest price target for the stock is $100 — slightly more than -72.46 percent from TSLA’s current share price.

The shares are currently floating around the first support level of $353.42. Below this, the next support is placed in the zone of $343.78. Till the time, the TSLA stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 65.35 on daily chart, which may remain a cause for concern. If the price breaks below $343.78 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $370.04 mark may result into a pull-back move towards $377.02 level.

TSLA shares accumulated 3.36 points or 0.93 percent on Thursday to $363.06 with a light trade volume of 7.825 million shares. After opening the session at $356.01, the shares went as high as $367.38 and as low as $350.76, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $60.7 billion and now has 167.17 million shares outstanding. Tesla, Inc. (TSLA) stock has gained 6.34 percent of market value in 21 trading days.

TSLA stock has a trailing 3-year beta of 0.59, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$6.39 a share in the trailing twelve months. The stock’s value has surged 16.61 percent year to date (YTD) against a rise of 19.55 percent in 12 month’s time. The company’s shares still trade -6.3 percent away from its 1-year high of $387.46 and 48.44 percent up from 52-week low of $244.59. The average consensus rating on the company is 3, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a hold.

Shares of Tesla, Inc. (TSLA) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry TSLA operates in has an average P/E of 15.91. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 3.46 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.53. 17.3 percent is the gross profit margin for Tesla, Inc. and operating margin sits at -8 percent. Along with this, the net profit margin is -10.2 percent.

TSLA will be showing off its Q4 earnings on February 20. Analysts are forecasting revenue to climb 114.8 percent to $7.06B in the next fiscal quarter, while earnings are seen soaring by nearly -168.75 percent to $2.09 per share. History has shown that shares in Tesla, Inc. have gone up on 18 different earnings reaction days and are predicted to add 0.07 percent when the company reports upcoming earnings. In last reported earnings results, it earned $2.9 per share, better than the -$0.19, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $6.82B, better than the $6.31B analysts expected. Earnings are estimated to increase by -59.7 percent this year, 528.3 percent next year and continue to increase by 35 percent annually for the next 5 years.