Electric vehicle (EV) company Fisker (NYSE:FSR) has shed more than 90% year-to-date (YTD), leaving shareholders wondering when the downturn will subside.
On Monday, the company announced that it had received a financing commitment of $150 million through the sale of $166.67 million of 2024 senior secured convertible notes. Unfortunately for shareholders, these notes are convertible to FSR stock at any time, opening up the door for dilution.
Fisker also recently announced that it would lay off 15% of its workforce as part of its transition to a dealer-partner model from a direct-to-consumer model and in order to cut costs.
The company has a demand problem as well. As of March 15, Fisker estimated that its inventory of 4,700 vehicles was worth over $200 million. This comes after producing 10,193 vehicles in 2023 and delivering 4,929 of them.
Vehicle production is an extremely cost-intensive process. Making matters worse, Fisker has been plowing hundreds of millions of dollars into production while dealing with intense competition and EV price wars.
The good news is that Nissan (OTCMKTS:NSANY) may be eyeing an investment into the company. Earlier this month, Reuters reported that Nissan was considering investing over $400 million into Fisker’s truck platform. The deal could close as soon as this month, although nothing has been confirmed yet.
The 5 Biggest Buyers of FSR Stock
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. However, Fisker doesn’t have the strongest institutional support.
237 13F filers disclosed a stake in FSR stock during the fourth quarter compared to 249 filers during the prior quarter. The total shares owned by these filers declined by 8.65% to 47.51 million.
Hedge funds were even more bearish. 44 hedge funds disclosed a position in FSR, down from 54. Total shares owned by hedge funds declined by 21.9% to 28.51 million.
With that in mind, let’s take a look at Fisker’s top buyers based on recent 13F metrics:
- Jane Street bought 4.20 million shares, bringing its stake to 4.49 million shares.
- Invesco bought 3.26 million shares, bringing its stake to 4.93 million shares.
- Two Sigma bought 1.60 million shares and owned zero shares prior to Q4.
- Citigroup (NYSE:C) bought 1 million shares, bringing its stake to 1.08 million shares.
- The National Bank of Canada bought 1 million shares, bringing its stake to 2.01 million shares.
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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.
