Prepare Yourself for Liftoff: Nikola Corporation (NKLA)

Nikola Corporation (NASDAQ: NKLA) stock jumped 3.48% on Friday to $1.19 against a previous-day closing price of $1.15. With 270.81 million shares changed hands, the volume of the stock remained heavier than its average volume of 89.57 million shares. During the session, the Farm & Heavy Construction Machinery company that operates in wider Industrials sector, reached to the highest price of $1.3800 whereas the lowest price it dropped to was $1.1500. The 52-week range on NKLA shows that it touched its highest point at $5.45 and its lowest point at $0.52 during that stretch. It currently has a 1-year price target of $2.42. Beta for the stock currently stands at 2.01.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of NKLA was up-trending over the past week, with a rise of 35.21%, but this was down by -38.66% over a month. Three-month performance dropped to -15.00% while six-month performance fell -32.00%. The stock lost -77.84% in the past year, while it has lost -44.91% so far this year. A look at the trailing 12-month EPS for NKLA yields -1.50 with Next year EPS estimates of -0.43. For the next quarter, that number is -0.15. This implies an EPS growth rate of -2.50% for this year and 39.40% for next year.

Float and Shares Shorts:

At present, 856.33 million NKLA shares are outstanding with a float of 757.52 million shares on hand for trading. On Aug 30, 2023, short shares totaled 150.27 million, which was 17.55% higher than short shares on Jul 30, 2023. In addition to Mr. Stephen J. Girsky as the firm’s Pres, CEO & Director, Mr. Britton M. Worthen Esq. serves as its Chief Legal Officer & Sec..

Institutional Ownership:

Other institutions hold 9.42% of NKLA, in contrast to 16.30% held by mutual funds. Shares owned by individuals account for 15.95%. As the largest shareholder in NKLA with 5.11% of the stake, The Vanguard Group, Inc. holds 43,785,329 shares worth 43,785,329. A second-largest stockholder of NKLA, BlackRock Fund Advisors, holds 38,686,934 shares, controlling over 4.52% of the firm’s shares. Norges Bank Investment Management is the third largest shareholder in NKLA, holding 33,581,371 shares or 3.92% stake. With a 3.92% stake in NKLA, the Government Pension Fund – Global is the largest stakeholder. A total of 33,581,370 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.36% of NKLA stock, is the second-largest Mutual Fund holder. It holds 20,236,448 shares valued at 23.88 million. iShares Russell 2000 ETF holds 1.56% of the stake in NKLA, owning 13,331,430 shares worth 15.73 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, NKLA reported revenue of $18.13M and operating income of -$172.23M. The EBITDA in the recently reported quarter was -$165.69M and diluted EPS was -$0.41.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for NKLA since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With NKLA analysts setting a high price target of $5.00 and a low target of $1.00, the average target price over the next 12 months is $2.70. Based on these targets, NKLA could surge 320.17% to reach the target high and fall by -15.97% to reach the target low. Reaching the average price target will result in a growth of 126.89% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded NKLA stock several times over the past three months with 3 Buys and 5 Sells. In these transactions, 627,081 shares were bought while 290,769 shares were sold. The number of buy transactions has increased to 83 while that of sell transactions has risen to 162 over the past year. The total number of shares bought during that period was 6,835,736 while 7,024,902 shares were sold.

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