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

Key Points

• Li Auto shares jumped 6.7%, opening at $11.45 versus a previous close of $10.90 and later trading near $11.67.
• Analyst sentiment remains cautious: the stock has a consensus “Reduce” rating, with 11 Hold ratings and two Sell ratings, and a consensus price target of $16.28.
• Li Auto reported a quarterly loss of $0.22 per share on $3.78 billion in revenue, while maintaining weak profitability metrics, including a negative net margin of 4.44%.

Li Auto Inc. Sponsored ADR (NASDAQ:LI - Get Free Report) gapped up before the market opened on Friday. The stock had previously closed at $10.90, but opened at $11.45. Li Auto shares last traded at $11.6650, with a volume of 1,466,744 shares trading hands.

Wall Street Analyst Weigh In

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

Li Auto Stock Up 6.7%

The stock's fifty day moving average price is $12.07 and its 200-day moving average price is $14.29. The company has a quick ratio of 1.65, a current ratio of 1.81 and a debt-to-equity ratio of 0.11. The company has a market capitalization of $12.04 billion, a price-to-earnings ratio of -17.35 and a beta of 0.50.

Li Auto (NASDAQ:LI - Get Free Report) last announced its quarterly earnings data on Friday, July 31st. The company reported ($0.22) earnings per share 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. On average, sell-side analysts predict that Li Auto Inc. Sponsored ADR will post -0.71 earnings per share for the current fiscal year.

Institutional Trading of Li Auto

Several large investors have recently modified their holdings of the stock. Xiamen Xinweidachuang Investment Partnership Limited Partnership acquired a new stake in Li Auto in the second quarter valued at approximately $57,833,177. Hsbc Holdings PLC lifted its position 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 worth $12,259,000 after purchasing an additional 630,516 shares during the period. Quantinno Capital Management LP lifted its holdings in Li Auto by 160.6% in the first quarter. Quantinno Capital Management LP now owns 192,668 shares of the company's stock valued at $3,435,000 after buying an additional 118,733 shares during the period. Barometer Capital Management Inc. bought a new stake in shares of Li Auto during the 1st quarter valued at about $1,548,000. Finally, Headlands Technologies LLC acquired a new stake in shares of Li Auto during the 2nd quarter worth approximately $1,133,000. 9.88% of the stock is owned by institutional investors and hedge funds.

About Li Auto

Li Auto Inc is a Chinese automotive company that designs, develops, manufactures and sells new energy vehicles. The company focuses primarily on premium smart SUVs and has built its business around range-extended electric vehicle technology, which uses an onboard gasoline engine to generate electricity for the vehicle's battery and electric motors.

Li Auto's vehicle lineup has included the Li ONE and the L-series range-extended electric SUVs, including the Li L6, L7, L8 and L9. The company has also expanded into battery-electric vehicles, including the Li MEGA multi-purpose vehicle.

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