Stock of the Day

October 27, 2023

Stellantis (STLA)

$13.95
-$0.17 (-1.2%)
Market Cap: $42.66B

About Stellantis

Stellantis N.V. engages in the design, engineering, manufacturing, distribution, and sale of automobiles and light commercial vehicles, engines, transmission systems, metallurgical products, mobility services, and production systems worldwide. It provides luxury and premium vehicles; sport utility vehicles; American and European brand vehicles; and parts and services, as well as retail and dealer financing, leasing, and rental services. The company offers its products under the Abarth, Alfa Romeo, Chrysler, Citroën, DS, Dodge, Fiat, Jeep, Maserati, Ram, Opel, Lancia, Vauxhall, Peugeot, and Comau brand names through distributors and dealers. Stellantis N.V. was founded in 1899 and is based in Hoofddorp, the Netherlands.

Stellantis Bull Case

Here are some ways that investors could benefit from investing in Stellantis:

  • Stellantis has recently seen significant institutional investment, with AustralianSuper Pty Ltd increasing its stake by 34.3%, indicating strong confidence in the company's future performance.
  • The stock is currently trading at $13.12, which is near its 52-week low of $12.12, potentially offering a buying opportunity for investors looking for value.
  • Analysts have a consensus target price of $27.34, suggesting a substantial upside potential from the current trading price, which could attract investors seeking growth.
  • Stellantis has a relatively low debt-to-equity ratio of 0.26, indicating a strong balance sheet and lower financial risk, which is appealing for risk-averse investors.
  • The company has a diverse portfolio of brands and models, which can help mitigate risks associated with market fluctuations and consumer preferences.

Stellantis Bear Case

Investors should be bearish about investing in Stellantis for these reasons:

  • Despite recent investments, Stellantis has experienced a decline in stock price, trading down 3.0% recently, which may indicate underlying issues that could affect future performance.
  • The stock has a current ratio of 1.14 and a quick ratio of 0.85, suggesting that while the company can cover its short-term liabilities, it may face liquidity challenges in a downturn.
  • With 59.48% of the stock owned by institutional investors, there is a risk that large sell-offs by these investors could negatively impact the stock price.
  • Stellantis operates in a highly competitive automotive market, which can lead to pressure on margins and profitability, especially with the shift towards electric vehicles.
  • The company has a 200-day moving average price of $14.40, indicating a downward trend in stock performance, which may concern potential investors about the stock's momentum.

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