The Most-Traded Stocks by TipRanks Investors in August 2023

After trending higher for several months, the broader market indices finished lower in August 2023. Meanwhile, the magnificent seven stocks, which marked exceptional gains in the first seven months, delivered a mixed performance. However, the uptrend in Nvidia’s (NASDAQ:NVDA) stock carried over into August as it continued to benefit from AI (Artificial Intelligence)-driven demand. 

The three major U.S. indices, the S&P 500 (SPX), Nasdaq (NDX), and the Dow Jones Industrial Average (DJIA), finished the month lower as Fitch, an independent credit rating agency, downgraded the U.S. credit rating. Even though the major indices declined, the decline was shallow as the economy is proving resilient despite concerns. 

Against this backdrop, we looked into the month’s Buy and Sell transactions of investors who hold a TipRanks Smart Portfolio to understand August’s trading patterns better.

August’s Most-Bought Stock

Maintaining its lead, Apple (NASDAQ:AAPL) was once again the most-bought stock for August. Investors’ confidence in Apple stock remains high despite decreased iPhone, iPad, and Mac sales in Q3. Investors’ optimism stems from Apple’s large installed base of active devices (over 2 billion) and strength in its Services business. 

In addition, Apple continues to generate massive cash flows and enhance its shareholders’ returns through share repurchases and dividend payments. Apple ended Q3 with over $166 billion in cash and marketable securities. Further, it returned over $24 billion to shareholders in Q3, which included $3.8 billion in dividends and over $18 billion in share buybacks. 

While investors most recently bought AAPL stock, let’s look at what the Street recommends for the iPhone maker. 

Is Apple a Good Stock to Buy Right Now?

Apple’s strong fundamentals, focus on innovation, growing Services revenue, large installed base of active devices, and ability to generate solid cash flows make it a long-term winner. Nevertheless, near-term macro headwinds and softness in sales are keeping analysts cautiously optimistic. 

With 22 Buy and eight Hold recommendations, Apple stock has a Moderate Buy consensus rating. At the same time, analysts’ average 12-month price target of $208.13 implies an upside potential of 9.85% from current levels.

Top 10 Most-Bought Stocks

As seen from the buying patterns of investors, August was again a tech-laden month, with the top 10 most-bought stocks belonging to that sector, including the magnificent seven. Moreover, investors diversified their risks by investing in popular ETFs (exchange-traded funds) like the SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust (QQQ). Here is a list of the most-bought stocks in August:

1. Apple
2. Tesla (NASDAQ:TSLA)
3. Amazon (NASDAQ:AMZN)
4. Nvidia (NASDAQ:NVDA)
5. Microsoft (NASDAQ:MSFT) 
6. Alphabet Class A (NASDAQ:GOOG)
7. Alibaba (NYSE:BABA)
8. Invesco QQQ Trust
9. SPDR S&P 500 ETF Trust 
10. Meta Platforms (NASDAQ:META) 

August’s Most-Sold Stock

Shares of the EV (electric vehicle) titan Tesla were the most sold in August. Tesla stock has recovered significantly so far this year. However, Tesla’s continued price cuts and growing margin pressure remain a concern. 

Tesla CEO Elon Musk focuses on pushing volumes as competition grows amid a weak macro environment. During the Q2 conference call, he hinted that the company could make more price cuts depending on market conditions. 

Tesla continues to enjoy industry-leading margins. In addition, its focus on reducing costs via product improvement and efficient production is likely to help it recoup margins in the long term. However, the company’s margins have consistently trended lower over the past several quarters, which irked investors. 

Is Tesla Share a Buy or Hold?

Tesla stock is up about 99% year-to-date despite the recent pullback in its price. This significant appreciation in its price and ongoing pressure on margins keep analysts sidelined. 

It has received 12 Buy, 13 Hold, and five Sell recommendations for a Hold consensus rating. Analysts average price target of $257.75 implies 5.20% upside potential from current levels.

Top 10 Most-Sold Stocks

Coming back to the list, here are August’s top 10 most-sold stocks:

1. Tesla
2. Amazon
3. Apple
4. Nvidia 
5. Microsoft 
6. Meta 
7. Alphabet Class A
8. Advanced Micro Devices (NASDAQ:AMD)
9. Alibaba
10. Walt Disney (NYSE:DIS)

We will be back soon with the most-traded stocks of September 2023. Until then, stay ahead of the market by tracking your portfolio’s performance easily with the Smart Portfolio tool on TipRanks.

Disclosure