Li Auto (NASDAQ:LI) Cut to Strong Sell at Wall Street Zen

Key Points

• Wall Street Zen downgraded Li Auto to “strong sell,” while the broader analyst consensus stands at “Reduce” with a $16.28 price target.
• Several firms recently lowered their price targets, including Barclays to $14, Piper Sandler to $13, and HSBC to $15.60; Li Auto shares opened at $12.37 and remain near their 12-month low.
• Li Auto reported a quarterly loss of $0.22 per share on $3.78 billion in revenue, with negative net margin and return on equity. Institutional investors own 9.88% of the company, with several major firms increasing their stakes.

Li Auto (NASDAQ:LI - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "sell" rating to a "strong sell" rating in a research note issued to investors on Sunday, Wall Street Zen reports.

Several other research firms also recently weighed in on LI. Barclays dropped their price target on Li Auto from $18.00 to $14.00 and set an "equal weight" rating for the company in a research report on Friday, May 29th. Bank of America restated a "neutral" rating and issued a $18.00 price objective on shares of Li Auto in a research report on Thursday, May 28th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Li Auto in a research note on Wednesday, August 26th. Piper Sandler dropped their price objective on Li Auto from $15.00 to $13.00 and set a "neutral" rating for the company in a research report on Thursday, August 27th. Finally, HSBC dropped their price objective on Li Auto from $17.20 to $15.60 and set a "hold" rating for the company in a research report on Wednesday, June 10th. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Reduce" and a consensus price target of $16.28.

Li Auto Stock Up 2.6%

LI stock opened at $12.37 on Friday. The company's 50 day simple moving average is $12.45 and its 200-day simple moving average is $15.35. The firm has a market capitalization of $13.25 billion, a PE ratio of -18.46 and a beta of 0.55. Li Auto has a 12 month low of $11.65 and a 12 month high of $27.10. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.81 and a quick ratio of 1.65.

Li Auto (NASDAQ:LI - Get Free Report) last issued its quarterly earnings data on Friday, August 14th. The company reported ($0.22) earnings per share for the quarter. Li Auto had a negative return on equity of 6.58% and a negative net margin of 4.44%.The business had revenue of $3.78 billion for the quarter. Equities analysts expect that Li Auto will post -0.15 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Xiamen Xinweidachuang Investment Partnership Limited Partnership acquired a new stake in shares of Li Auto in the second quarter worth approximately $57,833,177. Goldman Sachs Group Inc. increased its position in Li Auto by 133.3% during the first quarter. Goldman Sachs Group Inc. now owns 2,636,156 shares of the company's stock worth $66,431,000 after purchasing an additional 1,505,991 shares during the last quarter. SIH Partners LLLP increased its position in Li Auto by 184.7% during the fourth quarter. SIH Partners LLLP now owns 2,199,063 shares of the company's stock worth $37,230,000 after purchasing an additional 1,426,745 shares during the last quarter. Hsbc Holdings PLC raised its stake in Li Auto by 648.8% during the fourth quarter. Hsbc Holdings PLC now owns 727,702 shares of the company's stock worth $12,259,000 after purchasing an additional 630,516 shares during the period. Finally, Barclays PLC raised its stake in Li Auto by 167.0% during the fourth quarter. Barclays PLC now owns 536,718 shares of the company's stock worth $9,087,000 after purchasing an additional 335,718 shares during the period. Institutional investors and hedge funds own 9.88% of the company's stock.

Li Auto Company Profile

Li Auto Inc is a Chinese automotive company that develops, manufactures and sells smart electric vehicles, with an early focus on range-extended electric SUVs designed for family use. The company is headquartered in China and serves the domestic market through a combination of online channels and a network of retail/showroom locations. Li Auto was founded to address range-anxiety in electric vehicle buyers by integrating a small internal-combustion engine as a range extender alongside a large battery, enabling longer driving range while retaining electric driving characteristics.

The company's product lineup centers on multi‑occupant SUVs that combine electric propulsion, advanced in‑vehicle connectivity and driver‑assistance features.

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