uploads///Instituional holdings in auto stocks

Have Institutional Holdings in F, GM, TSLA, FCAU Risen?


Oct. 14 2019, Updated 11:27 a.m. ET

Institutional holdings in Tesla (TSLA), Ford Motor (F), General Motors (GM), and Fiat Chrysler Automobiles (FCAU) stand at various levels ranging from 30% to 80%. According to the Nasdaq data, the institutional holding in General Motors stands at ~77%. Also, the institutional ownership in Fiat stands at ~30%. The institutional holdings in Ford and Tesla stand at ~56% each.

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Institutional holdings in Ford and General Motors stocks

Large institutions holdings in Ford stock include Vanguard Group, BlackRock, Newport Trust, and State Street. In the second quarter, Vanguard, Blackrock, and State Street raised their holdings in Ford stock. However, Newport lowered its holdings in the stock. Further, of the top ten institutional holdings owners in F, seven institutions raised their stakes in the stock in the second quarter.

Similarly, in General Motors stock, institutions with high holdings include Capital World Investors, Vanguard Group, BlackRock, and Berkshire Hathaway. Of these, Capital World, Vanguard, and BlackRock have raised their holdings in General Motors in the second quarter while Berkshire’s holding is unchanged.

Institutional holdings in Tesla and Fiat stock

Baillie Gifford, Capital World Investors, Public Investment Fund, and Vanguard Group have high institutional holdings in Tesla stock. Of these, Baillie and Capital World raised their holdings in TSLA in the second quarter. However, Public Investment Fund’s holdings remained unchanged. But Vanguard witnessed a marginal decline in its holdings in the second quarter.

By contrast, Tiger Global Management, Harris Associates, Baillie Gifford, and Vanguard Group have large institutional holdings in Fiat stock. In the second quarter, Tiger Global and Vanguard raised their holdings in FCAU while Harris and Baillie have lowered their stakes in the stock.

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Has institutional ownership changed in Q3?

The auto sector has been in trouble in the third quarter. The series of bad news in the industry will most likely impact the above institutional ownership in the stock. Institutions, in their next filings, will reveal their ownership changes in the third quarter.

While macro concerns like recession and trade tensions have impacted these stocks, internally, they are affected due to their restructuring activities. Plus, challenging market conditions are impacting the auto industry. Consumer preferences, fuel regulations, and rapidly evolving technology have shrunk the demand for vehicles.

The troublesome third quarter

In the third quarter, auto companies presented their second-quarter earnings. These would have further prompted investors to change institutional holdings in the stock. While Ford, Tesla, and Fiat missed their second-quarter earnings estimate, General Motors surpassed it.

Plus, in the third quarter, auto companies have mostly had bad news. In the quarter, Ford was downgraded by Moody’s, whereas General Motors faced labor trouble. Ford’s rating downgrade was due to the expectation of weaker earnings and cash flows.

Also, GM’s ongoing labor strike has been hitting the company hard. The company is losing millions of dollars each day due to halted operation at many of its sites. These events could have impacted institutional holdings in auto stocks in the third quarter.

Tesla loses, peer sales dip

Automakers like Ford and General Motors have posted a dull set of sales in the US in the third quarter. Also, in China, Ford and General Motors sales have dipped by 30% and 18%, respectively, in the third quarter. 

Wall Street is not enthused about automakers’ third-quarter earnings. While Ford, GM, and Fiat earnings are estimated to fall in the third quarter, Tesla is expected to post a loss. To learn more, read Auto Industry: What Can Investors Expect from Q3 Earnings?

To understand auto companies’ prospects for the next couple of years, read Automakers’ Growth Outlook: F, TSLA, GM, FCAU, and RACE.


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