Hesai Group (NASDAQ:HSAI) Shares Down 6.9% - Should You Sell?

Key Points

• Hesai Group shares fell 6.9% to $14.90, with trading volume down 86% from the average session. The stock remains below its 50-day and 200-day moving averages of $17.35 and $18.54, respectively.
• Analyst sentiment remains broadly positive, with a consensus “Buy” rating and a $23.50 price target, despite recent downgrades and a quarterly EPS miss of $0.01 versus the $0.07 estimate.
• Hesai reported $126.7 million in quarterly revenue, slightly above expectations, and maintains strong liquidity with a 5.37 current ratio and minimal debt. Institutional investors own 48.53% of the company.

Hesai Group Sponsored ADR (NASDAQ:HSAI - Get Free Report) shares fell 6.9% during trading on Monday. The stock traded as low as $15.07 and last traded at $14.90. 243,482 shares traded hands during mid-day trading, a decline of 86% from the average session volume of 1,801,542 shares. The stock had previously closed at $16.01.

Wall Street Analyst Weigh In

HSAI has been the subject of a number of recent research reports. Wall Street Zen raised shares of Hesai Group from a "strong sell" rating to a "sell" rating in a research report on Saturday, October 3rd. Weiss Ratings cut shares of Hesai Group from a "hold (c)" rating to a "hold (c-)" rating in a report on Thursday. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, Hesai Group has a consensus rating of "Buy" and a consensus target price of $23.50.

Hesai Group Stock Down 6.2%

The firm has a market cap of $2.10 billion, a price-to-earnings ratio of 36.77, a price-to-earnings-growth ratio of 0.70 and a beta of 1.36. The stock has a 50-day moving average of $17.35 and a 200-day moving average of $18.54. The company has a current ratio of 5.37, a quick ratio of 4.86 and a debt-to-equity ratio of 0.03.

Hesai Group (NASDAQ:HSAI - Get Free Report) last issued its earnings results on Saturday, August 15th. The company reported $0.01 earnings per share for the quarter, missing the consensus estimate of $0.07 by ($0.06). The company had revenue of $126.70 million during the quarter, compared to analyst estimates of $126.00 million. Hesai Group had a return on equity of 5.52% and a net margin of 14.77%. As a group, sell-side analysts forecast that Hesai Group Sponsored ADR will post 0.61 EPS for the current fiscal year.

Hedge Funds Weigh In On Hesai Group

Institutional investors have recently modified their holdings of the company. Bessemer Group Inc. increased its holdings in shares of Hesai Group by 45.3% in the 1st quarter. Bessemer Group Inc. now owns 2,325 shares of the company's stock worth $44,000 after acquiring an additional 725 shares during the period. Blue Trust Inc. bought a new stake in Hesai Group in the 1st quarter valued at about $51,000. Summit Securities Group LLC acquired a new position in Hesai Group during the 1st quarter valued at about $56,000. Leonteq Securities AG boosted its stake in Hesai Group by 107.9% during the 1st quarter. Leonteq Securities AG now owns 9,833 shares of the company's stock valued at $188,000 after purchasing an additional 5,104 shares during the period. Finally, Headlands Technologies LLC acquired a new position in Hesai Group during the 2nd quarter valued at about $234,000. Institutional investors own 48.53% of the company's stock.

About Hesai Group

Hesai Group is a lidar technology company that develops, manufactures and sells three-dimensional sensing products for automotive and robotic applications. Its lidar systems use laser-based sensing to help vehicles and machines detect and understand their surroundings, supporting functions such as advanced driver-assistance systems, autonomous driving and navigation.

The company's product portfolio includes long-, medium- and short-range lidar sensors, as well as related software and perception solutions.

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