Hesai Group (NASDAQ:HSAI) Shares Gap Down - Time to Sell?

Key Points

• Hesai Group shares dropped sharply, opening at $13.41 versus a prior close of $13.99 and later trading near $12.92. The stock remains below its 50-day and 200-day moving averages of $16.69 and $18.27.
• Despite the decline, analysts maintain a consensus “Buy” rating with a target price of $23.50. However, recent ratings included downgrades, and the company’s latest quarterly EPS of $0.01 missed expectations of $0.07.
• Hesai reported quarterly revenue of $126.7 million, slightly above estimates, and maintains strong liquidity with a 5.37 current ratio and minimal debt. Hedge funds and institutional investors own approximately 48.53% of the shares.

Hesai Group Sponsored ADR (NASDAQ:HSAI - Get Free Report) gapped down before the market opened on Wednesday. The stock had previously closed at $13.99, but opened at $13.41. Hesai Group shares last traded at $12.9210, with a volume of 884,080 shares.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on the stock. Weiss Ratings downgraded shares of Hesai Group from a "hold (c)" rating to a "hold (c-)" rating in a research report on Thursday, October 8th. Wall Street Zen upgraded shares of Hesai Group from a "strong sell" rating to a "sell" rating in a report on Saturday, October 3rd. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, Hesai Group currently has a consensus rating of "Buy" and a consensus target price of $23.50.

Hesai Group Price Performance

The stock has a fifty day moving average of $16.69 and a 200-day moving average of $18.27. The company has a quick ratio of 4.86, a current ratio of 5.37 and a debt-to-equity ratio of 0.03. The stock has a market capitalization of $1.83 billion, a price-to-earnings ratio of 31.92, a P/E/G ratio of 0.66 and a beta of 1.36.

Hesai Group (NASDAQ:HSAI - Get Free Report) last announced its quarterly earnings results on Saturday, August 15th. The company reported $0.01 EPS 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 analysts' expectations of $126.00 million. Hesai Group had a net margin of 14.77% and a return on equity of 5.52%. On average, equities research analysts predict that Hesai Group Sponsored ADR will post 0.52 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the stock. Bessemer Group Inc. boosted its stake in Hesai Group by 45.3% in the first quarter. Bessemer Group Inc. now owns 2,325 shares of the company's stock valued at $44,000 after acquiring an additional 725 shares in the last quarter. Blue Trust Inc. acquired a new stake in shares of Hesai Group during the first quarter worth about $51,000. Summit Securities Group LLC acquired a new stake in shares of Hesai Group during the first quarter worth about $56,000. Leonteq Securities AG increased its position in shares of Hesai Group by 107.9% during the first quarter. Leonteq Securities AG now owns 9,833 shares of the company's stock worth $188,000 after purchasing an additional 5,104 shares in the last quarter. Finally, Headlands Technologies LLC acquired a new stake in shares of Hesai Group during the second quarter worth about $234,000. 48.53% of the stock is owned by hedge funds and other institutional investors.

About Hesai Group

Hesai Group is a global developer and manufacturer of lidar, or light detection and ranging, technology. Its sensors use laser signals to measure the surrounding environment and generate detailed three-dimensional data for applications that require perception, navigation, and obstacle detection.

The company's products are designed primarily for advanced driver-assistance systems and autonomous driving, including passenger vehicles, commercial vehicles, and robotaxi fleets. Hesai also provides lidar solutions for robotics, last-mile delivery, industrial applications, and other forms of autonomous mobility.

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