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

Key Points

• Price action: Shares of Li Auto gapped down, opening at $17.86 after a $18.65 close and last trading near $17.95 on heavy volume, trading slightly below its 50‑ and 200‑day moving averages (~$18.04 and $18.47).
• Analyst backdrop: Analysts are mixed with a consensus Hold and an average price target of $18.55; several firms lowered ratings or targets (e.g., Goldman cut Buy→Neutral, Jefferies trimmed its PO) while Piper Sandler upgraded to Outperform.
• Fundamentals and ownership: Li Auto reported a ($0.06) EPS last quarter with a slim net margin (~1%) and a high P/E (~138), yet large institutions including Goldman, HSBC and Barclays have recently increased their stakes (institutional ownership ~9.9%).

Shares of Li Auto Inc. Sponsored ADR (NASDAQ:LI - Get Free Report) gapped down before the market opened on Friday . The stock had previously closed at $18.65, but opened at $17.86. Li Auto shares last traded at $17.9450, with a volume of 862,169 shares changing hands.

Analyst Upgrades and Downgrades

A number of brokerages have commented on LI. Jefferies Financial Group restated a "hold" rating and set a $17.50 price objective (down from $28.80) on shares of Li Auto in a research note on Friday, January 23rd. The Goldman Sachs Group cut Li Auto from a "buy" rating to a "neutral" rating and set a $19.00 price objective on the stock. in a research note on Tuesday, March 17th. Piper Sandler upgraded Li Auto from a "neutral" rating to an "outperform" rating in a research note on Friday, March 13th. JPMorgan Chase & Co. boosted their price objective on Li Auto from $14.00 to $15.50 and gave the stock an "underweight" rating in a research note on Friday, March 13th. Finally, Weiss Ratings reiterated a "sell (d+)" rating on shares of Li Auto in a research note on Friday, March 27th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, twelve have given a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat, Li Auto presently has a consensus rating of "Hold" and an average price target of $18.55.

Li Auto Stock Performance

The company has a quick ratio of 1.68, a current ratio of 1.81 and a debt-to-equity ratio of 0.05. The company has a 50 day moving average of $18.04 and a 200 day moving average of $18.47. The firm has a market cap of $19.15 billion, a price-to-earnings ratio of 137.80 and a beta of 0.60.

Li Auto (NASDAQ:LI - Get Free Report) last released its quarterly earnings results on Sunday, March 22nd. The company reported ($0.06) EPS for the quarter. Li Auto had a return on equity of 1.52% and a net margin of 0.99%.The business had revenue of $545.61 million during the quarter. As a group, equities research analysts expect that Li Auto Inc. Sponsored ADR will post 0.14 EPS for the current fiscal year.

Institutional Trading of Li Auto

Several institutional investors and hedge funds have recently bought and sold shares of LI. Goldman Sachs Group Inc. raised its stake 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 valued at $66,431,000 after buying an additional 1,505,991 shares in the last quarter. SIH Partners LLLP raised its stake in Li Auto by 184.7% during the fourth quarter. SIH Partners LLLP now owns 2,199,063 shares of the company's stock valued at $37,230,000 after buying an additional 1,426,745 shares in the last quarter. Maxi Investments CY Ltd acquired a new stake in Li Auto during the third quarter valued at approximately $16,040,000. 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 valued at $12,259,000 after buying an additional 630,516 shares in the last quarter. 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 valued at $9,087,000 after buying an additional 335,718 shares in the last quarter. 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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