Despite an insider sale earlier this week, shares of Tesla (NASDAQ:TSLA) stock have seen positive price action recently. Over the past five days, the electric vehicle (EV) maker has increased by more than 8%.
The recent insider sale of TSLA stock can be attributed to Andrew Baglino, Tesla’s Senior Vice President (SVP) of Powertrain and Energy Engineering. Here’s what investors should know about the sale and TSLA stock.
SVP Andrew Baglino Sells TSLA Stock
Based on a Form 4 received by the U.S. Securities and Exchange Commission (SEC) yesterday, SVP Andrew Baglino sold 3,500 shares on March 28. The shares were sold at an average price of $1,065 per share, for a total transaction amount of $3.7 million.
That said, it can be implied that Baglino sold these shares the same day he received them. This is because the executive also acquired 3,500 shares on March 28 at an average price of $62.72. The shares were granted to Baglino as part of “single option reward grant.” The sale was also pursuant to a pre-arranged 10b5-1 trading plan adopted in November 2021. After the sale, Baglino still owns 20,138 shares of TSLA stock.
So, what does Baglino’s sale mean? Well, insider sales are not as conclusive as insider buys. Insiders may sell stock for a variety of reasons, whether it be for personal expenses, taxes or a loss of faith in the company. In this case, Baglino seems to be cashing out on an employee option compensation plan.
With this sale in mind, let’s take a look at other insider activity. During the past 12 months, Tesla insiders have made zero open market buys. They have also sold 16.3 million shares over the same period. In total, insiders have a net activity of 16.3 million shares sold for the past one year. However, much of this insider selling can be attributed to CEO Elon Musk, who sold around 15.6 million shares in 2021.
Who Else Is Betting Big on Tesla?
In addition to insider activity, it’s important for investors to look at what institutions are doing when it comes to examining stocks. Analyzing institutional ownership allows retail investors to see what some of the world’s savviest money managers are invested in. These large funds also provide liquidity and support for stocks.
As of the fourth quarter, 2,591 funds own TSLA stock, marking a 19% increase from the prior quarter. Furthermore, 536 funds initiated a new position in Tesla in Q4, while 71 funds completely liquidated their position. That in mind, let’s take a look at the top five institutional shareholders of Tesla:
- Vanguard Group: 62.4 million shares or 6.21% ownership.
- BlackRock (NYSE:BLK): 52.8 million shares or 5.26% ownership.
- Capital World Investors: 36.7 million shares or 3.65% ownership.
- State Street (NYSE:STT): 32.5 million shares or 3.23% ownership.
- Geode Capital Management: 13.6 million shares or 1.35% ownership.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
