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

Key Points

• Li Auto shares opened higher, rising from a prior close of $11.70 to $11.98 before trading near $11.92.
• Analyst sentiment remains cautious: HSBC and Barclays cut their price targets, while several firms downgraded the stock. The consensus rating is “Reduce,” with an average price target of $16.28.
• Li Auto reported a quarterly loss of $0.22 per share on $3.78 billion in revenue, and analysts expect a full-year loss. Institutional investors own 9.88% of the company, with some funds recently increasing their positions.

Li Auto Inc. Sponsored ADR (NASDAQ:LI - Get Free Report) gapped up prior to trading on Thursday . The stock had previously closed at $11.70, but opened at $11.98. Li Auto shares last traded at $11.9210, with a volume of 408,644 shares changing hands.

Analysts Set New Price Targets

A number of brokerages have commented on LI. HSBC lowered their price target on Li Auto from $17.20 to $15.60 and set a "hold" rating for the company in a research report on Wednesday, June 10th. Wall Street Zen cut Li Auto from a "sell" rating to a "strong sell" rating in a research note on Sunday, September 6th. Zacks Research downgraded Li Auto from a "hold" rating to a "strong sell" rating in a report on Friday, August 28th. Barclays dropped their target price on Li Auto from $18.00 to $14.00 and set an "equal weight" rating on the stock in a research report on Friday, May 29th. Finally, Sanford C. Bernstein reiterated a "market perform" rating and issued a $14.50 price target on shares of Li Auto in a report on Wednesday, August 26th. Ten equities research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Reduce" and a consensus price target of $16.28.

Li Auto Stock Performance

The company has a market capitalization of $11.66 billion, a PE ratio of -17.63 and a beta of 0.55. The firm has a 50-day moving average of $12.40 and a two-hundred day moving average of $14.78. The company has a quick ratio of 1.65, a current ratio of 1.81 and a debt-to-equity ratio of 0.11.

Li Auto (NASDAQ:LI - Get Free Report) last released its quarterly earnings data on Friday, July 31st. The company reported ($0.22) EPS for the quarter. The company had revenue of $3.78 billion during the quarter. Li Auto had a negative return on equity of 6.58% and a negative net margin of 4.44%. Research analysts anticipate that Li Auto Inc. Sponsored ADR will post -0.28 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in LI. Xiamen Xinweidachuang Investment Partnership Limited Partnership purchased a new stake in shares of Li Auto during the 2nd quarter worth about $57,833,177. Hsbc Holdings PLC increased its stake in shares of Li Auto by 648.8% in the 4th quarter. Hsbc Holdings PLC now owns 727,702 shares of the company's stock valued at $12,259,000 after purchasing an additional 630,516 shares in the last quarter. Quantinno Capital Management LP increased its stake in shares of Li Auto by 160.6% in the 1st quarter. Quantinno Capital Management LP now owns 192,668 shares of the company's stock valued at $3,435,000 after purchasing an additional 118,733 shares in the last quarter. Headlands Technologies LLC acquired a new position in Li Auto in the 2nd quarter worth about $1,133,000. Finally, Barometer Capital Management Inc. acquired a new position in Li Auto in the 1st quarter worth about $1,548,000. Hedge funds and other institutional investors own 9.88% of the company's stock.

Li Auto Company Profile

Li Auto Inc NASDAQ: LI is a Chinese new energy vehicle manufacturer that develops, manufactures and sells smart electric vehicles. The company has focused primarily on family-oriented vehicles, combining battery-electric powertrains with extended-range electric vehicle technology designed to provide additional driving range through an onboard engine-generator.

Li Auto's product portfolio has included the Li ONE and the Li L-series of premium sport utility vehicles, including the L6, L7, L8 and L9.

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