3. Stellantis N.V. (NYSE:STLA)
Number of Hedge Fund Holders: 35
Share Price as of August 7: $15.39
Stellantis N.V. (NYSE:STLA), one of the Big Three automakers, is involved in the design, engineering, production, distribution, and sale of automobiles, light commercial vehicles, and engines, among other products.
Formed through the merger of Fiat Chrysler Automobiles and PSA Group, the company offers a range of vehicles, including luxury and premium models, as well as SUVs. The company markets its vehicles under a diverse range of brands, such as Abarth, Alfa Romeo, Chrysler, Citroën, DS, Dodge, Fiat, Jeep, Maserati, and others. It is one of the best EV stocks under $50.
Stellantis (NYSE:STLA) is driven by its strong global and local presence. With a broad portfolio of well-established brands, the company effectively caters to various markets and consumer preferences. The company is ambitiously shifting towards electric vehicles, setting a target to have all its sales in Europe and half in the U.S. come from battery electric vehicles (BEVs) by the end of the decade.
Additionally, Stellantis (NYSE:STLA) aims to achieve 5 million global BEV sales annually by 2030. In Europe, the company’s electric models are performing exceptionally well. The Fiat 500e ranks among the top-selling EVs in Italy, and the Peugeot e-208 was the leading EV in France during the first quarter of 2024.
On July 31, Nomura analyst Anindya Das upgraded Stellantis (NYSE:STLA) to Buy from Neutral with a price target of EUR 21, down from EUR 24. This upgrade reflects optimism about the company’s plans to tackle challenges in North America. The company has invested significantly in launching a range of new, cost-effective products in Europe, following a consolidation of its production platforms.
The efforts are expected to help the company navigate slower sales growth in the European market. With its current share price offering a 10% dividend yield, the analyst sees the company as an attractive investment, combining strong future growth prospects with substantial shareholder returns.
According to our database, 35 hedge funds held stakes in Stellantis (NYSE:STLA) in the first quarter, with positions worth $556.400 million. TOMS Capital is the largest shareholder of the company, as of March 31, and has a stake worth $137.821 million.
Ariel Global Fund stated the following regarding Stellantis N.V. (NYSE:STLA) in its first quarter 2024 investor letter:
“We added multinational automotive manufacturing company, Stellantis N.V. (NYSE:STLA), which was formed from the merger of Fiat Chrysler Automobiles and the French PSA Group in the period. With deal synergies lowering overall operating expenses and contributing to healthy free cash flow generation, management has begun increasing shareholder returns through dividends and share buybacks. Although some investors remain on the sidelines over concerns auto sales and margins have peaked, STLA’s average transaction price is growing year-over-year. We think this momentum will continue and expect STLA to deliver double-digit operating profit margin as it further expands its leading position in the Middle East and South America. Furthermore, the company’s Leapmotor joint venture presents a unique way to benefit from the strengths of Chinese original equipment manufacturers. Meanwhile, in the current electric vehicle slowdown environment, we believe STLA is best positioned to weather the storm. Management believes it can maintain profitability and is open to rationalizing its 14 brands. STLA seeks to be number one in the commercial vehicle segment by 2027, which comes with high customer stickiness, solid profitability and recurring revenue streams.”
