Tesla Inc (NASDAQ: TSLA) shares are up 6% on Wednesday after the company announced a 5-for-1 stock split on Tuesday afternoon. The stock split will be implemented after the market close Aug. 31.Companies with relatively high stock prices like Tesla often implement stock splits to bring their share prices back down to a level that is more affordable for smaller, retail investors.No Value Creation: Tesla's morning rally added $18 billion to the company's market cap despite creating no actual value."The math of it obviously does not create any value. But people think it creates value, so therefore it does," CNBC's Karen Finerman said on Tuesday afternoon. "It's kind of ridiculous, especially since we've seen you can do partial shares now, you can do trading with little or no cost commissions now."Guy Adami said he agreed with Finerman's take."The absurdity of it speaks volumes as to what's going on. I'm going to get atted for this, but I think for a lot of people, they'd rather be long five shares of a $200 stock as opposed to one share of a $1,000 stock. There's an absurdity to that that I can't explain, but I think that's just human nature," Adami said.Wall Street analysts also weighed in on Tesla's split and the subsequent price action.Insatiable Demand: Baird analyst Ben Kallo said investors simply have an appetite for technology stocks with exposure to transportation, renewable energy and software."We believe the stock split is a recognition of the fact that the market is increasingly influenced by individual investors, including those looking to gain exposure to next-generation transportation," Kallo wrote.Wedbush analyst Daniel Ives said the stock split was a smart move by Tesla and that the company's China business is firing on all cylinders."Tesla is following the lead of Apple and ultimately we expect more tech giants to potentially head down this path over the coming months as the parabolic rally in tech/EV names over the past five months has put companies in a position of strength to make such moves," Ives wrote.Morningstar analyst David Whiston said Tesla's share price should theoretically not rise on the split news, but the stock has been on fire since CEO Elon Musk tweeted that Tesla's share price was too high back on May 1."The stock opened at $755 that day and has more than doubled since then before coming back down in recent days, a downward trend the split news will now likely conveniently stop," Whiston wrote.TSLA Ratings And Price Targets: * Baird has a Neutral rating and $1,658 target * Wedbush has a Neutral rating and $1,800 target. * Morningstar has a Sell rating and $751 fair value estimate. * Tesla's stock traded around $1,471.45 per share at time of publication.Related Links:2 Years Since 'Funding Secured' Firestorm, Musk And Tesla Are Flying High Long-Term Investors Prefer Microsoft And Amazon Over Tesla And Facebook, Tech Survey Says Latest Ratings for TSLA DateFirmActionFromTo Aug 2020CitigroupMaintainsSell Jul 2020Morgan StanleyMaintainsUnderweight Jul 2020BernsteinDowngradesMarket PerformUnderperform View More Analyst Ratings for TSLA View the Latest Analyst Ratings See more from Benzinga * 2 Years Since 'Funding Secured' Firestorm, Musk And Tesla Are Flying High * Long-Term Investors Prefer Microsoft And Amazon Over Tesla And Facebook, Tech Survey Says * Survey Shows Engineering Students Want To Work For Elon Musk(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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Yahoo Finance’s Emily McCormick joins The First Trade with Alexis Christoforous to discuss Tesla’s announcement that it plans to enact a 5-for-1 stock split.Australian biotech Mesoblast sank 35% on Tuesday ahead of this week’s US Federal Drug Administration (FDA) committee meeting, which will assess the efficacy of its flagship stem cell therapy candidate.The stock dived to $11.33 at the close on Tuesday and is currently down 1.9% in pre-market trading. Mesoblast (MESO) disclosed that the FDA’s Oncologic Drugs Advisory Committee (ODAC) will meet on Thursday to review data supporting its Biologics License Application (BLA) for the approval of its stem cell candidate remestemcel-L for the treatment of steroid-refractory acute graft versus host disease (SR-aGVHD) in children, a severe immune response which can occur after a bone marrow transplant.There are currently no FDA-approved treatments in the US for children under 12 with SR-aGVHD, a potentially life-threatening complication of an allogeneic bone marrow transplant for blood cancer. The stem cell therapy candidate is also currently being studied in the US as a treatment for COVID-19 patients suffering from acute respiratory distress.The ODAC will vote in the afternoon session on Aug. 13 whether the available data support the efficacy of remestemcel-L in pediatric patients with SR-aGVHD. The session will discuss the Phase 3 trial results and supporting clinical data included in the BLA. It will also discuss issues related to the characterization and critical quality attributes of remestemcel-L.The ODAC is an independent panel of experts that provides advice and recommendations based on potential issues highlighted by the FDA during their review of the efficacy and safety of marketed and investigational products for use in the treatment of cancer. One of the issues raised by the FDA is whether more evidence is needed to demonstrate the treatment delivers benefits to human patients.Although the FDA will consider the recommendation of the advisory committee, the final decision regarding the approval of the product is made by the FDA solely, and the recommendations by the panel are non-binding. The FDA is scheduled to make a decision on the application on Sept. 30.H.C. Wainwright analyst Swayampakula Ramakanth believes that the treatment is likely to be approved before the Sept. 30 deadline “due to a strong combination of safety and efficacy” adding that “the main issues raised by the FDA are addressable”.“Taking into consideration the FDA’s analyses, we believe the benefit of Ryoncil for pediatric patients with SR-aGVHD continue to significantly outweigh its risks,” Ramakanth wrote in a note to investors. “At the same time, we note that the agency could request the company to complete a post-marketing study in order to provide additional data.”Nonetheless, Ramakanth reiterated a Buy on Mesoblast along with a $21 price target, which implies potential upside of 85% from current levels. (See Mesoblast stock analysis on TipRanks)Overall MESO scores 5 unanimous Buy ratings from analysts which add up to a Strong Buy consensus. Despite the stock’s 54% rally this year, the $18.05 average price target still indicates 59% upside potential.Related News: Pfizer Inks Deal To Manufacture Gilead’s Covid-19 Remdesivir Treatment Inovio To Start P2/3 Study Of Covid-19 Candidate In Sept.; Shares Drop 8% Novavax Rises 5% On Earnings; $2B Covid-19 Vaccine Funding More recent articles from Smarter Analyst: * Eli Lilly, Innovent’s TYVYT Expanded Use Application Accepted In China * ASOS: ‘100% Profit Beat’ Cheers RBC Capital On Trading Update * Truist Securities Ramps Up Wayfair’s PT On Improving Profitability * Equinix Enters India With $161M GPX Global Deal; RBC Bullish
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