Tesla Inc (TSLA) Stock Settles at $243.92: What’s Contributing to This Price Point?
Deutsche Bank has recently resumed Tesla Inc (TSLA) stock to Buy rating, as announced on September 10, 2024, according to Finviz. Earlier, on September 5, 2024, Wolfe Research had resumed the stock to Peer Perform. William Blair also initiated Outperform rating. Additionally, Truist reiterated Hold rating on July 24, 2024, with a target price of $215. Piper Sandler analysts, in their report published on July 24, 2024, also reiterated Overweight rating and set a price target of $205 for Tesla Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Tesla Inc (TSLA) Stock Trading Recap
On Thursday, Tesla Inc (TSLA) stock saw a modest uptick, ending the day at $243.92 which represents a slight increase of $16.72 or 7.36% from the prior close of $227.2. The stock opened at $234 and touched a low of $232.13 during the day, reaching a high of $244.24. The volume of shares traded was 102.17 million exceeding the average volume of 95.60 million.
TSLA Stock Performance and Moving Averages
In recent trading, Tesla Inc (TSLA) stock price has shown some volatility, fluctuating 6.14% over the last five trades and 10.32% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 38.86%, and it has gained 34.34% in the previous three months. Currently, TSLA is trading at 11.22%, 9.67%, and 20.61% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, TSLA, a Consumer Cyclical sector stock, is trading -10.96% below its 52-week high but remains 75.73% above its 52-week low. The Average True Range (ATR) (14 days) of 10.8 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Tesla Inc’s Profitability and Valuation Ratios
Tesla Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 7.58% and a profit margin of 13.04%, with a gross margin of 38.86%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Tesla Inc’s market capitalization stands at $779.24 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 68.5, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 76.94. Additionally, the Price-to-Sales Ratio is 8.18, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 11.72, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 12.98% of Tesla Inc (TSLA)’s shares, while financial institutions hold 46.16%.
Notable insider trades include DENHOLM ROBYN M, Director at Tesla Inc (TSLA), who sold 66364 shares on Jul 25 ’24, at $219.96 each, totaling $14.60 million. On Jun 06 ’24, Zhu Xiaotong, SVP, Automotive, sold 650 shares for $174.21 each, amounting to $0.11 million. Additionally, on May 06 ’24, DENHOLM ROBYN M sold 93705 shares at $184.86 each, generating $17.32 million.