Analysts Flashing a Green Light for Tesla, Inc. (TSLA)?

Analysts at Wedbush, assumed coverage of Tesla, Inc. (NASDAQ:TSLA) with Outperform recommendation, according to their opinion released on December 14. Jefferies analysts bumped their recommendation on TSLA stock from Hold to Buy in a separate flash note to investors on December 07.

In the latest fortnight, short interest in Tesla, Inc. (NASDAQ:TSLA) stock reduced by 4.03%, indicating a significant rise in bullish sentiment. When it comes to determining how a name is viewed by investors, short interest is often a useful tool. The average analyst recommendations at 2.9 suggests buying these shares. Between December 14 and December 31, the total number of shorted shares amounted to 25.57 million shares. That was 1,074,494 less shares than the total of 26.65 million shares in the space of prior two weeks, which means more traders or funds betting that the stock will go up. Average daily volume for TSLA at the December 31st settlement jumped to 7,867,238, as compared to 7,530,469 at the December 14th report. That brought days to cover to 3.250406, a 8.14% decrease from the 3.538453 days to cover recorded at the prior short interest data release.

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 01/07/2019. Rice Linda Johnson parted with a total of 1.7 thousand shares of company at average share price of $321.6. The total for the sales was set at $546.72 thousand. After this transaction, the Director account balance stood at 0 thousand shares. The stock grew 7.98 percent since that insider sale. On 01/02/2019, Guillen Jerome M, President, Automotive, sold 1 thousand shares at a price per share of $306.1. This removed 306.1 thousand shares from the insider’s fortune and the stock saw a 13.45 percent rally in value since the news became public. This transaction left 7.86 thousand shares in the President, Automotive account. On 12/28/2018, Chief Technical Officer Straubel Jeffrey B performed a sale transaction worth $4.88 million. This sale at $325.64 each has eliminated 15 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 6.64 percent increase since the transaction was reported. The insider now is left with 306.4 thousand shares remaining in the account. Gracias Antonio J., who performs the Director job, sold 16.78 thousand shares for $5.35 million. The disposal occurred on 12/21/2018 was priced at $318.62 per share. The share price soared 8.99 percent since the reporting date. Gracias Antonio J. now left with a stake of 290.78 thousand TSLA stock worth $100.98 million after the insider selling.

Tesla, Inc. (TSLA) is expected to jump by -3.15 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 52.62 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $325, which represents a return potential of -6.41 percent when compared to the closing price of the stock of $347.26 on Friday, January 11. The lowest price target for the stock is $210 — slightly more than -39.53 percent from TSLA’s current share price.

The shares are currently floating around the first support level of $341.22. Below this, the next support is placed in the zone of $335.17. Till the time, the TSLA stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 54.28 on daily chart, which may remain a cause for concern. If the price breaks below $335.17 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $350.86 mark may result into a pull-back move towards $354.45 level.

TSLA shares accumulated 2.29 points or 0.66 percent on Friday to $347.26 with a light trade volume of 5.032 million shares. After opening the session at $342.09, the shares went as high as $348.41 and as low as $338.77, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $59.2 billion and now has 170.6 million shares outstanding. Tesla, Inc. (TSLA) stock has lost -5.32 percent of market value in 21 trading days.

TSLA stock has a trailing 3-year beta of 0.72, 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 4.34 percent year to date (YTD) against a rise of 3.72 percent in 12 month’s time. The company’s shares still trade -10.38 percent away from its 1-year high of $387.46 and 41.98 percent up from 52-week low of $244.59. The average consensus rating on the company is 2.9, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

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 14.57. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 3.38 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.22. 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.