Elon Musk Keeps Selling, but These 2 Stocks Are the Ones to Watch Wednesday

Astronomical pre-market strikes are getting investors’ attention.

Key Facets

  • Markets appeared ready for a mute day on Wednesday.
  • Tesla’s chief exercised some alternate strategies and offered some shares.
  • Victoria’s Secret and FuelCell Energy made wide strikes in pre-market shopping and selling.

The stock market appeared to find it irresistible used to be if truth be told in a position to name an discontinuance to 2021 on Wednesday, with extremely modest strikes in stock index futures. As of 8: 30 a.m. ET this day, Dow Jones Industrial Average (DJINDICES:^DJI) futures were down 9 aspects to 36,273, while S&P 500 (SNPINDEX:^GSPC) futures were up a single expose 4,780. Futures on the Nasdaq Composite (NASDAQINDEX:^IXIC) developed 17 aspects to 16,505.

Making files used to be Tesla (NASDAQ:TSLA), as CEO Elon Musk continued to originate stock and alternate strategies transactions earlier than one year-discontinuance. On the other hand, the electrical automobile firm‘s share trace didn’t originate wide strikes in pre-market shopping and selling Wednesday morning. Reacting to a grand increased extent were Victoria’s Secret (NYSE:VSCO) and FuelCell Energy (NASDAQ:FCEL), both of which had more-mammoth things to thunder to shareholders.

Tax planning for Musk

Shares of Tesla were up less than 1% Wednesday morning. Filings with the Securities and Alternate Commission tiring Tuesday showed that Musk had exercised alternate strategies on 1.6 million shares of Tesla stock. That transfer accompanied gross sales of about $1 billion in shares, with the in all probability intent of the utilize of the proceeds to quilt tax licensed responsibility from the alternate strategies explain.

Blue Tesla Model S on a road with sun on the horizon.

Image source: Tesla.

Musk’s extensive gross sales hold served a number of functions. They’ve accelerated great profits into 2021, upfront of the chance that major federal profits tax will increase might advance in 2022. They’ll also hold helped to diversify Musk’s holdings, which until now had been highly concentrated in equity pursuits in Tesla and his industry ventures. Each originate sense from a financial planning standpoint, however it absolutely’s exhausting to design a firm conclusion about what message shareholders must have interaction.

Victoria’s Secret buys abet stock

Victoria’s Secret shares moved increased by a sharper margin, hiking 9% in pre-market shopping and selling Wednesday. The apparel firm launched that it might truly scheme a $250 million repurchase of its stock, showing its optimism about its prospects.

Victoria’s Secret susceptible what’s identified as an accelerated share repurchase agreement, shopping abet about 4.1 million shares in a single block, with an anticipated transaction date of Dec. 31. Minor adjustments might be made in a while, however the agreement returns capital to shareholders more fleet than a feeble launch-market buyback authorization in most cases would.

Also, the firm acknowledged that it mute stands by the fourth-quarter gross sales and earnings guidance it gave abet in November, citing get Thanksgiving gross sales and an spectacular performance within the last week of the holiday browsing season. That bodes neatly for Victoria’s Secret and its prospects heading into 2022.

Losing its rate

Meanwhile, shares of FuelCell Energy dropped higher than 14% Wednesday morning. The gas cell skills firm launched fiscal fourth-quarter outcomes that did now not give shareholders the self belief they had hoped to hold.

The numbers from FuelCell didn’t peek magnificent. Revenue fell 18% one year over one year to fair appropriate $13.9 million. Earn losses ballooned by 27% to almost $25 million, and biggest a substantial expand in shares prominent allowed the per-share loss resolve to tumble a shrimp from one year-ago ranges.

On the other hand, FuelCell did showcase that and not utilizing a module exchanges actual by the quarter, service-agreement and license-linked earnings used to be fully worn out. Technology earnings jumped 31%, while earnings from developed technologies contracts used to be increased by 14%.

Even so, investors had been depending on FuelCell coming into into high-boost mode. At the moment time’s tumble within the stock trace reveals how upset shareholders are at now not seeing the boost in FuelCell’s industry that they wanted.

This article represents the opinion of the creator, who can also disagree with the “unswerving” recommendation location of a Motley Fool top rate advisory service. We’re motley! Questioning an investing thesis — even even handed one of our hold — helps us all say severely about investing and originate choices that lend a hand us change into smarter, happier, and richer.

Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool owns and recommends Tesla. The Motley Fool has a disclosure policy.”>

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