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STLA
LONGSTELLANTIS N.V
Funds
3
Score
4.50
vs SPY
-3.8%
Stock return (since Q-end)
+12.6%
SPY return (since Q-end)
+16.3%
Current price
$7.98
News Summary
NegativeStellantis reported Q1 2026 operational beats (AOI nearly tripled YoY to €960M) and confirmed 2026 guidance, but shares fell 6% due to persistent negative free cash flow (-€1.9B) and earnings quality concerns. The company unveiled an ambitious FaSTLAne 2030 strategy with €60B investment and €6B cost-reduction targets, but faces headwinds from 25% U.S. tariffs (€1.6B annual impact), two credit rating downgrades, and analyst downgrades led by Bank of America cutting to Underperform with a EUR 5.50 price target.
Red flags
- •Negative industrial free cash flow of -€1.9B in Q1 2026; Moody's projects -€2.5B for full year 2026 (third consecutive year of negative FCF)
- •Two credit rating downgrades: S&P to BBB- (Negative outlook), Moody's to Baa3 (one notch above junk)
- •Adjusted diluted EPS of €0.21 missed consensus estimates by ~62% (€0.56 expected)
- •Material tariff headwind of €1.6B annually from 25% U.S. tariffs implemented late April 2026
- •Bank of America downgrade to Underperform with price target slashed 27% to EUR 5.50
- •Cancelled major product launch (Ram 1500 BEV) indicating EV strategy pivot and demand weakness
- •Moody's warning that profitability recovery will take longer than expected due to EV scaling-back costs
- •Adjusted EBIT margin expected to hover near 1% due to tariffs and warranty expenses
Funds Buying (3)
| Fund | Manager | Shares Held | ∆ Shares | Position Value | QoQ | Status |
|---|---|---|---|---|---|---|
| Viking Global | Andreas Halvorsen | 16.0M | +16.0M | $111.9B | — | NEW |
| Point72 | Steve Cohen | 9.4M | +9.4M | $66.4B | — | NEW |
| Soros Fund Management | Soros Family Office | 379K | +379K | $2.7B | — | NEW |
Shares Held and Position Value reflect total quarter-end holdings. ∆ Shares is the change from the prior quarter.