Li Auto (NASDAQ:LI) Shares Down 4.3% - Here's Why

Key Points

• Li Auto shares fell 4.3% to about $11.42 in mid-day trading, with volume down 79% from the average session level.
• Analyst sentiment remains cautious: the stock carries a consensus “Reduce” rating, with 11 Hold ratings and two Sell ratings, and an average price target of $16.28. Piper Sandler recently cut its target from $15 to $13.
• The company reported a quarterly loss of $0.22 per share on $3.78 billion in revenue, alongside a negative net margin of 4.44%; analysts expect a full-year loss of $0.71 per share.

Li Auto Inc. Sponsored ADR (NASDAQ:LI - Get Free Report)'s stock price was down 4.3% on Wednesday. The company traded as low as $11.42 and last traded at $11.4150. Approximately 764,345 shares traded hands during mid-day trading, a decline of 79% from the average session volume of 3,621,795 shares. The stock had previously closed at $11.93.

Analysts Set New Price Targets

A number of research analysts have commented on the stock. Sanford C. Bernstein reissued a "market perform" rating and set a $14.50 target price on shares of Li Auto in a research report on Wednesday, August 26th. Piper Sandler lowered their price target on shares of Li Auto from $15.00 to $13.00 and set a "neutral" rating for the company in a research report on Thursday, August 27th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Li Auto in a research report on Wednesday, August 26th. Zacks Research upgraded shares of Li Auto from a "strong sell" rating to a "hold" rating in a research note on Friday, October 2nd. Finally, Wall Street Zen lowered shares of Li Auto from a "sell" rating to a "strong sell" rating in a report on Sunday, September 6th. Eleven research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Reduce" and a consensus price target of $16.28.

Li Auto Stock Down 3.8%

The business has a 50 day moving average of $11.84 and a two-hundred day moving average of $13.94. The stock has a market capitalization of $11.88 billion, a PE ratio of -17.11 and a beta of 0.50. The company has a debt-to-equity ratio of 0.11, a quick ratio of 1.65 and a current ratio of 1.81.

Li Auto (NASDAQ:LI - Get Free Report) last posted its earnings results on Friday, July 31st. The company reported ($0.22) earnings per share (EPS) for the quarter. Li Auto had a negative net margin of 4.44% and a negative return on equity of 6.58%. The company had revenue of $3.78 billion during the quarter. Analysts predict that Li Auto Inc. Sponsored ADR will post -0.71 EPS for the current year.

Institutional Trading of Li Auto

A number of institutional investors have recently made changes to their positions in the business. QRG Capital Management Inc. boosted its holdings in shares of Li Auto by 10.5% in the 2nd quarter. QRG Capital Management Inc. now owns 17,003 shares of the company's stock valued at $200,000 after acquiring an additional 1,615 shares during the last quarter. EverSource Wealth Advisors LLC raised its holdings in shares of Li Auto by 157.9% during the first quarter. EverSource Wealth Advisors LLC now owns 2,878 shares of the company's stock worth $51,000 after purchasing an additional 1,762 shares during the last quarter. Leonteq Securities AG raised its holdings in shares of Li Auto by 5.4% during the first quarter. Leonteq Securities AG now owns 37,878 shares of the company's stock worth $675,000 after purchasing an additional 1,957 shares during the last quarter. Sowell Financial Services LLC lifted its position in Li Auto by 32.7% during the third quarter. Sowell Financial Services LLC now owns 16,813 shares of the company's stock valued at $191,000 after purchasing an additional 4,141 shares during the period. Finally, Tidal Investments LLC lifted its position in Li Auto by 10.7% during the second quarter. Tidal Investments LLC now owns 47,986 shares of the company's stock valued at $563,000 after purchasing an additional 4,650 shares during the period. Institutional investors and hedge funds own 9.88% of the company's stock.

About Li Auto

Li Auto Inc is a Chinese automaker that designs, develops, manufactures and sells new energy vehicles. The company focuses on smart electric vehicles, including extended-range electric vehicles that combine a battery-powered drivetrain with an onboard engine generator, as well as battery-electric vehicles.

Its product lineup has included the Li ONE and the L-series range-extended electric SUVs, such as the Li L6, Li L7, Li L8 and Li L9. The company has also developed the Li MEGA, a battery-electric multi-purpose vehicle.

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