Cathie Wood’s Ark Invest has been a seller of Tesla, Inc. TSLA shares in the past two sessions despite its bullish stance on the electric vehicle maker.
What Happened: The Wood-run firm’s ARK Next Generation Internet ETF ARKW disposed of a combined 49,806 shares of Tesla shares on Thursday and Friday, with the sales likely fetching the firm $12.24 million.
Friday’s transaction is significant because Ark chose to sell the stock on a down day, going against the usual trend. Tesla edged up merely 0.3% on Thursday before declining 4.02% on Friday.
Tesla is still the top holding of Ark’s flagship exchange-traded fund, the Ark Innovation ETF ARKK in which the EV maker has a 14.46% weighting. ARKK holds 3.83 million Tesla shares valued at $916.32 million.
Ark has a 2029 price target of $2,600 for Tesla.
See Also: How To Buy Tesla Stock
Why It’s Important: Tesla is scheduled to report its second-quarter results after the market close on Tuesday. Analysts, on average, expect the company to report earnings per share of 62 cents, sharply lower than the 91-cent per share reported a year ago. The consensus estimate calls for revenue of $24.73, down 0.80% year-over-year.
Future Fund’s Gary Black said in a post last week that he believes Tesla still offered a good setup into the second-quarter earnings. The most important variable is auto gross margin, excluding regulatory credit, the fund manager said. The consensus estimate for the metric is at 16.2%, slightly lower than the 16.4% reported for the first quarter, he added.
ARKK ended Friday’s session down 0.13% at $46.63, according to Benzinga Pro data.
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