Truist Financial Raises Tesla Stock Target to $406 Amid Analyst Buzz

Tesla, Inc. (NASDAQ:TSLA) received a notable boost in its stock target from Truist Financial, which increased its price forecast from $280.00 to $406.00 in a research note issued on October 19, 2023. Despite this upward adjustment, Truist maintains a “hold” rating on the electric vehicle manufacturer’s shares. The new target price suggests a potential downside of 7.51% compared to Tesla’s current market price.

Several other research firms have also recently updated their evaluations of Tesla. UBS Group set a target price of $247.00 on October 6, 2023, while CICC Research raised its price objective from $360.00 to $450.00, rating the stock as “outperform” on September 18, 2023. Daiwa Capital Markets reiterated a “neutral” rating on July 27, 2023, whereas Piper Sandler increased its target price from $400.00 to $500.00 on September 22, 2023. HSBC also raised its target from $120.00 to $127.00 on September 29, 2023.

Analysts have expressed a range of opinions on Tesla’s stock. Currently, two analysts rate it as a Strong Buy, twenty-one have issued a Buy rating, twelve recommend holding, and ten suggest selling. According to MarketBeat.com, the consensus rating for Tesla is “Hold,” with an average target price of $366.95.

Tesla’s Recent Earnings Performance

Tesla last reported its earnings on October 22, 2023, revealing earnings per share of $0.50 for the quarter, which surpassed the consensus estimate of $0.48 by $0.02. The company’s revenue reached $28.10 billion, significantly exceeding analyst expectations of $24.98 billion. This reflects an 11.6% increase in revenue compared to the same quarter in the previous year. During that period last year, Tesla reported earnings of $0.72 per share.

Equity analysts predict that Tesla will achieve an earnings per share of 2.56 for the current fiscal year, indicating a positive outlook for the company.

Insider Trading Activity

In related developments, significant insider trading has occurred recently. Senior Vice President Xiaotong Zhu sold 20,000 shares of Tesla on September 11, 2023, at an average price of $363.75, totaling approximately $7.28 million. Following this transaction, Zhu retained 47,600 shares, valued at about $17.31 million. This sale marked a 29.59% reduction in Zhu’s holdings.

Additionally, Director James R. Murdoch sold 120,000 shares on August 26, 2023, at an average price of $350.29, resulting in a total transaction value of approximately $42.03 million. Post-sale, Murdoch held 697,031 shares, valued at nearly $244.16 million, reflecting a 14.69% decrease in his ownership stake. Over the last quarter, corporate insiders sold a total of 202,606 shares, valued at approximately $75.59 million. Currently, corporate insiders own 19.90% of Tesla’s stock.

Institutional Investment Trends

Institutional investors have also been active in the market. Chapman Financial Group LLC acquired a new position in Tesla during the second quarter, valued at around $26,000. Arcadia Investment Management Corp MI entered a new position in the first quarter, worth approximately $27,000. Chelsea Counsel Co. increased its holdings in Tesla by 59.7% in the first quarter, now owning 107 shares worth approximately $28,000 after purchasing an additional 40 shares.

Centennial Bank AR raised its position by 833.3% in the first quarter, now holding 112 shares valued at approximately $29,000. Finally, LGT Financial Advisors LLC acquired a new stake in Tesla during the second quarter, valued at around $29,000. Overall, institutional investors currently own 66.20% of Tesla’s stock.

As Tesla continues to evolve in the competitive electric vehicle market, the insights from analysts and the actions of insiders and institutional investors will likely play a significant role in shaping the company’s future trajectory.