An Important Check-Up On Nikola Corporation (NASDAQ: NKLA)

FIVE Stock
FIVE Stock

Fidelity Management & Research Co.. has recently announced that it has increased stake in Nikola Corporation (NASDAQ:NKLA) by 2,696.22%. After grabbing 18.14 million shares, the institutional investor is now in possession of 17.49 million shares of the Consumer Cyclical Company. The new investment brought the stake of investor firm to 5.03% having worth around $544.08 million. Moreover, P. Schoenfeld Asset Management LP increased its share by 3.04 million to have a control over 3.04 million shares. And Hudson Bay Capital Management LP raised its holdings to 1.55 million shares by acquiring 2.13 million shares or 0.59% of the stake.

Nikola Corporation (NKLA) concluded trading on 08/26/20 at a closing price of $38.82, with 6.83 million shares of worth about $265.13 million changed hands on the day. Weekly performance of the stock remained negative as price took a plunge of -8.72% during that period and on Wednesday the price saw a loss of about -0.92%. Currently the company’s common shares owned by public are about 303.79M shares, out of which, 88.08M shares are available for trading.

A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 5 analysts are covering the NKLA stock and their offered price forecasts bring an average price target of $53.00. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $79.00 and could fall to a lowest price of $45.00. Analysts also issued an outlook of 2.50 for the Nikola Corporation stock for next 12 months. The stock’s current price level is 33.45% above of average price target set by the analysts, while a rise to estimated low would result in gain of 13.73 for the stock. However, touching the estimated high of $79.00 would mean a gain of 50.86% for the stock.

According to filings with the U.S. Securities and Exchange Commission (SEC), insiders took part in trade of the company’s stock for 18 times over the past 12 months. They bought 156,269,849 shares in 17 of the transactions. In 1 selling transactions, insiders dumped 1,400,000 shares.

Westchester Capital Merger Fund, Fidelity Nasdaq Composite Index F, and GAMCO International SICAV – Merge are the top 3 mutual funds which are holding stakes in Nikola Corporation Westchester Capital Merger Fund is currently holding 0.48 million shares of worth totaling $14.28 million. The company recently came selling -0.14 million shares which brought its stake up to 0.13% of the company’s outstanding shares. GAMCO International SICAV – Merge, after buying 0.21 million shares, have now control over 0.06% of the stake in the company. It holds 0.0 shares of worth $6.16 million.

Nikola Corporation (NASDAQ: NKLA) started trading at $39.96, above $0.78 from concluding price of the previous day. However, the stock finished the trading on the day at a closing price of $38.82, or with a loss of -0.92%. Stock saw a price change of -8.72% in past 5 days and over the past one month there was a price change of 18.53%. Year-to-date (YTD), NKLA shares are showing a performance of 276.17% which increased to 283.22% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $10.17 but also hit the highest price of $93.99 during that period. While comparing its average daily trading volume of 19.56 million shares, we see that about 6.83 million changed hands on the day. The stock is currently trading -0.51% below its 20-day simple moving average (SMA20), while that difference is down -19.62% for SMA50 and it goes to 64.31% higher than SMA200.

Fidelity Management & Research Co.. acquired 18.14 million shares of Nikola Corporation having value of about $544.08 million. Data submitted at the U.S SEC by Fidelity Management & Research Co.. revealed that the firm now holds 17.49 million shares in the company valued at close to $678861372.66, or have control over 2,696.22% stake in the company. Nikola Corporation (NASDAQ: NKLA) currently have 303.79M outstanding shares and institutions hold larger chunk of about 13.50% of that. Holding of mutual funds in the company is about 10.11% while other institutional holders and individual stake holders have control over 52.27% and 0.40% of the stake respectively.

The stock has a current market capitalization of $15.30B. It has posted earnings per share of -$0.41 in the same period. It has a debt-to-equity ratio of 0.01. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for NKLA, volatility over the week remained 6.18% while standing at 8.48% over the month.

Analysts are in expectations that Nikola Corporation (NKLA) stock would likely to be making an EPS of -$0.25 in the current quarter, while forecast for next quarter ESPS is -$0.29 and it is -$1.14 for next year. For the current quarter EPS, analysts have given the company a lowest target -$0.34 which is -$0.15 at the higher side of the target for the same. Stock’s fiscal year EPS is expected to rise by 9.00% while it is estimated to decrease by -10.90% in next year.

Analysts at 5 brokerage firms have issued recommendations for the Nikola Corporation (NKLA)’s stock and average of those rates the stock at a “Moderate Buy” and assign it a score of 2.50. Out of those 5 Wall Street analysts, 2 recommended a “Buy” rating, while 3 were in favor recommending the stock as a “Hold” and 0 analyst recommended the stock as “Sell”.

Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by Wedbush on August 26, 2020 offering a Neutral rating for the stock and assigned a target price of $45 to it. Coverage by Deutsche Bank stated Nikola Corporation (NKLA) stock as a Hold in their note to investors on July 16, 2020, suggesting a price target of $54 for the stock. On July 08, 2020, JP Morgan Upgrade their recommendations, while on July 07, 2020, RBC Capital Mkts Initiated their ratings for the stock with a price target of $46. Stock get a Neutral rating from JP Morgan on June 22, 2020.


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