Li Auto (NASDAQ:LI) Shares Gap Up - Here's Why

Key Points

• Li Auto shares opened at $30.97 after closing at $29.19, but last traded down at $28.16 with significant trading volume of 2,420,561 shares.
• Cfra Research upgraded Li Auto's rating from "strong sell" to "hold," with a consensus price target of $32.85 and an average rating of "Hold" from analysts.
• The company reported a revenue of $3.53 billion for the last quarter, slightly surpassing estimates, although its earnings per share missed expectations by $0.01.

Li Auto Inc. Sponsored ADR (NASDAQ:LI - Get Free Report) shares gapped up before the market opened on Tuesday . The stock had previously closed at $29.19, but opened at $30.97. Li Auto shares last traded at $28.16, with a volume of 2,420,561 shares.

Analysts Set New Price Targets

Separately, Cfra Research upgraded Li Auto from a "strong sell" rating to a "hold" rating in a research report on Tuesday, June 10th. Five analysts have rated the stock with a hold rating and three have issued a buy rating to the stock. Based on data from MarketBeat.com, Li Auto has a consensus rating of "Hold" and a consensus price target of $32.85.

Li Auto Stock Down 3.3%

The business has a 50-day simple moving average of $28.21 and a two-hundred day simple moving average of $26.48. The company has a market capitalization of $26.43 billion, a price-to-earnings ratio of 24.04, a PEG ratio of 1.09 and a beta of 0.94. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.72 and a current ratio of 1.87.

Li Auto (NASDAQ:LI - Get Free Report) last released its earnings results on Thursday, May 29th. The company reported $0.08 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.09 by ($0.01). The company had revenue of $3.53 billion during the quarter, compared to analyst estimates of $3.45 billion. Li Auto had a net margin of 5.60% and a return on equity of 11.83%. The company's revenue for the quarter was up 1.1% on a year-over-year basis. During the same period in the previous year, the firm posted $1.21 EPS. As a group, equities analysts predict that Li Auto Inc. Sponsored ADR will post 0.96 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. SVB Wealth LLC acquired a new stake in shares of Li Auto during the 1st quarter worth $33,000. Summit Securities Group LLC purchased a new stake in Li Auto during the 1st quarter worth $50,000. CX Institutional purchased a new stake in Li Auto during the 1st quarter worth $72,000. Brooklyn Investment Group boosted its position in Li Auto by 1,077.3% during the 1st quarter. Brooklyn Investment Group now owns 4,980 shares of the company's stock worth $125,000 after purchasing an additional 4,557 shares during the period. Finally, Halbert Hargrove Global Advisors LLC purchased a new stake in Li Auto during the 1st quarter worth $126,000. 9.88% of the stock is currently owned by institutional investors and hedge funds.

About Li Auto

Li Auto Inc operates in the energy vehicle market in the People's Republic of China. It designs, develops, manufactures, and sells premium smart electric vehicles. The company's product line comprises MPVs and sport utility vehicles. It offers sales and after sales management, and technology development and corporate management services, as well as purchases manufacturing equipment.