Li Auto (NASDAQ:LI) Shares Gap Up - Still a Buy?

Key Points

• Li Auto shares gapped up pre-market from $18.29 to $19.07 and were last trading around $19.49 on a volume of roughly 569,639 shares.
• Analysts have mostly trimmed targets and MarketBeat shows a consensus Reduce rating with an average price target of $18.55, though individual broker views range from Strong Buy to Sell.
• Company fundamentals: a $20.61 billion market cap, very high P/E (~150), muted profitability (quarterly EPS -$0.06, net margin ~1%), and institutional ownership under 10%.

Li Auto Inc. Sponsored ADR (NASDAQ:LI - Get Free Report) shares gapped up before the market opened on Friday . The stock had previously closed at $18.29, but opened at $19.07. Li Auto shares last traded at $19.4910, with a volume of 569,639 shares changing hands.

Analysts Set New Price Targets

Several brokerages recently issued reports on LI. Jefferies Financial Group restated a "hold" rating and set a $17.50 price target (down from $28.80) on shares of Li Auto in a research note on Friday, January 23rd. Citigroup lowered their price target on Li Auto from $20.20 to $18.50 and set a "neutral" rating on the stock in a research note on Thursday, January 15th. JPMorgan Chase & Co. upped their price objective on Li Auto from $14.00 to $15.50 and gave the company an "underweight" rating in a research note on Friday, March 13th. Macquarie Infrastructure set a $15.00 price objective on Li Auto in a research note on Thursday, January 15th. Finally, Piper Sandler upgraded Li Auto from a "neutral" rating to an "outperform" rating in a research note on Friday, March 13th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, eleven have assigned a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Reduce" and an average price target of $18.55.

Li Auto Stock Up 6.5%

The firm has a market capitalization of $20.61 billion, a price-to-earnings ratio of 149.90 and a beta of 0.60. The company has a current ratio of 1.81, a quick ratio of 1.68 and a debt-to-equity ratio of 0.05. The firm has a fifty day moving average price of $17.91 and a 200 day moving average price of $18.93.

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

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Farther Finance Advisors LLC lifted its holdings in Li Auto by 312.3% during the 4th quarter. Farther Finance Advisors LLC now owns 1,674 shares of the company's stock worth $28,000 after buying an additional 1,268 shares in the last quarter. DV Equities LLC acquired a new position in Li Auto during the 4th quarter worth $72,000. Limestone Investment Advisors LP acquired a new position in Li Auto during the 3rd quarter worth $222,000. Chesapeake Capital Corp IL acquired a new position in Li Auto during the 3rd quarter worth $227,000. Finally, Mercer Global Advisors Inc. ADV acquired a new position in Li Auto during the 3rd quarter worth $227,000. 9.88% of the stock is owned by institutional investors and hedge funds.

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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