Li Auto (NASDAQ:LI) Shares Gap Down - Time to Sell?

Key Points

• Li Auto shares gapped down — the stock opened at $18.15 after a $18.74 close and last traded around $18.13 on volume ~647,154, trading near its 50‑day ($18.04) and 200‑day ($18.71) moving averages.
• Analysts have trimmed targets and shifted ratings: the consensus is a "Reduce" with an average price target of $18.55, including Citi cutting to $18.50 and Jefferies lowering to $17.50 while Piper Sandler upgraded to outperform.
• Fundamentals show a ($0.06) EPS for the quarter, revenue of $545.6M, a thin net margin (~1%) and a high PE (~140), with institutional ownership at about 9.9% despite a market cap near $19.3B.

Shares of Li Auto Inc. Sponsored ADR (NASDAQ:LI - Get Free Report) gapped down before the market opened on Wednesday . The stock had previously closed at $18.74, but opened at $18.15. Li Auto shares last traded at $18.1320, with a volume of 647,154 shares traded.

Analysts Set New Price Targets

LI has been the topic of a number of research analyst reports. Citigroup cut their price objective on shares of Li Auto from $20.20 to $18.50 and set a "neutral" rating on the stock in a research report on Thursday, January 15th. Wall Street Zen raised shares of Li Auto from a "strong sell" rating to a "sell" rating in a research report on Sunday. Sanford C. Bernstein set a $19.00 price target on shares of Li Auto and gave the company a "market perform" rating in a research report on Friday, March 13th. Jefferies Financial Group reaffirmed a "hold" rating and issued a $17.50 price target (down from $28.80) on shares of Li Auto in a research report on Friday, January 23rd. Finally, Piper Sandler raised shares of Li Auto from a "neutral" rating to an "outperform" rating in a research report on Friday, March 13th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, eleven have given a Hold rating and four have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Reduce" and an average price target of $18.55.

Li Auto Stock Performance

The company's 50 day moving average price is $18.04 and its 200-day moving average price is $18.71. The company has a debt-to-equity ratio of 0.05, a quick ratio of 1.68 and a current ratio of 1.81. The company has a market cap of $19.28 billion, a PE ratio of 140.28 and a beta of 0.60.

Li Auto (NASDAQ:LI - Get Free Report) last announced its quarterly earnings results on Sunday, March 22nd. The company reported ($0.06) EPS for the quarter. Li Auto had a net margin of 0.99% and a return on equity of 1.52%. The firm had revenue of $545.61 million during the quarter. Equities research analysts anticipate that Li Auto Inc. Sponsored ADR will post 0.96 earnings per share for the current fiscal year.

Institutional Trading of Li Auto

Several hedge funds have recently added to or reduced their stakes in the business. ABC Arbitrage SA purchased a new position in shares of Li Auto in the third quarter valued at about $865,000. SG Americas Securities LLC increased its position in shares of Li Auto by 324.2% during the fourth quarter. SG Americas Securities LLC now owns 342,025 shares of the company's stock valued at $5,790,000 after buying an additional 261,389 shares during the period. Maxi Investments CY Ltd purchased a new position in shares of Li Auto during the third quarter valued at about $16,040,000. American Century Companies Inc. increased its position in shares of Li Auto by 4.6% during the third quarter. American Century Companies Inc. now owns 1,355,616 shares of the company's stock valued at $34,351,000 after buying an additional 60,172 shares during the period. Finally, Victory Financial Group LLC purchased a new position in shares of Li Auto during the fourth quarter valued at about $638,000. 9.88% of the stock is owned by institutional investors.

About Li Auto

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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