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5 Big Investors Betting on Nikola (NKLA) Stock

  • Nikola (NKLA) delivered 63 trucks during the third quarter, bringing yearly deliveries to 111.
  • Former CEO Trevor Milton is the largest shareholder of Nikola, with a roughly 52 million share stake.
  • NKLA stock is down more than 65% year-to-date (YTD).

Nikola (NASDAQ:NKLA) stock is down by about 8% today after the company reported third-quarter earnings. Nikola produced 75 Tre battery electric vehicle (BEV) trucks at its Arizona facility and delivered 63 of them to dealers. Analysts had forecast production of 70 Tre BEVs. Nikola has now delivered 111 trucks year-to-date (YTD).

Deliveries did help drive Nikola’s revenue to $24.2 million for the quarter, beating the analyst estimate of $22.3 million. However, the company remains unprofitable, reporting an EPS loss of 54 cents. That’s equivalent to a net loss of $236.2 million. A year ago, EPS tallied in at a loss of 68 cents, or a net loss of $267.57 million.

Nikola President Michael Lohscheller added the following about the results:

“We also made significant advancements in developing our energy business, announcing our intent to develop access of up to 300 metric-tons per day of hydrogen and up to 60 stations by 2026, and our collaboration with E.ON in Europe.”

Looking forward, Nikola plans on building hydrogen-powered fuel-cell trucks. Earlier this week, shares of NKLA stock also received a boost when the company announced a collaboration with KeyState Natural Gas Synthesis. The collaboration will see KeyState provide Nikola with up to 100 tons of low-carbon hydrogen per day, which can power up to 2,500 Tre BEVs.

In the Q3 report, Nikola did not provide guidance. However, CFO Kim Brady did warn last quarter that yearly deliveries would “more likely” come in at the low end of Nikola’s previous guidance for between 300 and 500 deliveries.

With that in mind, let’s take a look at the investors betting on NKLA stock.

5 Big Investors Betting on NKLA Stock

Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During Q2, 249 13F filers reported owning NKLA stock, a decline of 16 filers from the previous quarter. Meanwhile, the institutional put/call ratio sits at 0.75, down from 1.54 during Q1. That’s equivalent to 29.52 million puts and 39.47 million calls, implying a bullish options stance. So, who are Nikola’s top shareholders?

  1. M&M Residual, an investment vehicle wholly owned by former CEO Trevor Milton: 51.04 million shares. In August, Milton acquired 3 million shares at $5.80 “in connection with the sale of real estate by an affiliate of M&M Residual.”
  2. Vanguard: 23.06 million shares. Vanguard purchased 3.95 million shares during Q2.
  3. BlackRock (NYSE:BLK): 17.69 million shares. BlackRock purchased 3.46 million shares during Q2.
  4. Inclusive Capital Partners: 7.47 million shares. Inclusive sold 600,000 shares during Q2.
  5. Coatue Management: 7.39 millions shares. Coatue purchased 2,444 shares during Q2.

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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.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.


Article printed from InvestorPlace Media, https://investorplace.com/2022/11/5-big-investors-betting-on-nikola-nkla-stock/.

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