Why Is Tesla Least Loved Among 'Magnificent Seven' By Institutional Investors? Fund Guru Gary Black Lists 5 Key Reasons
Portfolio Pulse from Shanthi Rexaline
Tesla, Inc. (TSLA) is the least-owned stock among institutional investors within the 'Magnificent Seven,' with only 54% of its float held by institutions. Fund manager Gary Black lists key man risk, headline risk, high P/E ratio, capital reinvestment risk, and underperformance as reasons. Despite this, retail interest in Tesla is rising, with the stock seeing the biggest dollar inflow from individual investors in 2023, trailing only SPDR S&P 500 ETF (SPY). Tesla's stock has declined by 5.07% in the second half of the year and an additional 12% in January.
January 16, 2024 | 6:13 am
News sentiment analysis
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POSITIVE IMPACT
Apple, Inc. (AAPL) is part of the 'Magnificent Seven' with high institutional ownership, suggesting strong institutional support.
Apple's high institutional ownership could indicate a solid backing from professional investors, which may positively influence its stock price.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 30
POSITIVE IMPACT
Amazon, Inc. (AMZN) is among the 'Magnificent Seven' with significant institutional ownership, suggesting investor confidence.
Amazon's position among companies with high institutional ownership could mean a positive sentiment from professional investors, potentially benefiting its stock price.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 30
POSITIVE IMPACT
Alphabet, Inc. (GOOGL) is among the top in institutional ownership, which may reflect a favorable outlook from professional investors.
Alphabet's significant institutional ownership suggests that it is well-regarded by professional investors, potentially supporting its stock price.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 30
POSITIVE IMPACT
Meta Platforms, Inc. (META) has the highest institutional ownership among the 'Magnificent Seven,' which may indicate strong institutional confidence.
High institutional ownership typically reflects a positive view among professional investors, which could be beneficial for META's stock price.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 30
POSITIVE IMPACT
Microsoft Corp. (MSFT) has substantial institutional ownership, indicating potential institutional trust in the company.
Microsoft's high level of institutional ownership could imply a stable investor base and possibly a positive impact on its stock price.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 30
POSITIVE IMPACT
Nvidia Corp. (NVDA) has notable institutional ownership, which may reflect a positive institutional perspective on the company.
Nvidia's considerable institutional ownership indicates that it may be favored by professional investors, which could be positive for its stock price.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 30
POSITIVE IMPACT
SPDR S&P 500 ETF (SPY) is second to Tesla in receiving the largest dollar inflow from individual investors in 2023, indicating strong retail confidence.
The high level of retail inflows into SPY suggests continued confidence among individual investors, which could support its price in the short term.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Tesla's low institutional ownership may concern investors, but rising retail interest and potential cash accumulation could offset negative sentiment.
While institutional skepticism could be a bearish signal, the strong retail interest and projected cash growth may provide some support to the stock price in the short term.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100