Li Auto (NASDAQ:LI) Shares Gap Up - Should You Buy?

Key Points

• Li Auto shares opened higher on Tuesday, rising from a prior close of $12.34 to an opening price of $12.75; they later traded at $12.535.
• Analyst sentiment is cautious: the stock has 10 Hold and three Sell ratings, with an overall “Reduce” rating and a consensus price target of $16.28. Recent actions included Piper Sandler cutting its target to $13 and Zacks Research downgrading the shares to Strong Sell.
• In its latest reported quarter, Li Auto posted a loss of $0.22 per share on $3.78 billion in revenue, alongside a negative 4.44% net margin.

Shares of Li Auto Inc. Sponsored ADR (NASDAQ:LI - Get Free Report) gapped up before the market opened on Tuesday. The stock had previously closed at $12.34, but opened at $12.75. Li Auto shares last traded at $12.5350, with a volume of 1,673,974 shares trading hands.

Analysts Set New Price Targets

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

Li Auto Stock Up 1.7%

The company has a current ratio of 1.81, a quick ratio of 1.65 and a debt-to-equity ratio of 0.11. The firm has a market capitalization of $13.00 billion, a P/E ratio of -18.72 and a beta of 0.40. The company has a 50 day simple moving average of $11.59 and a two-hundred day simple moving average of $14.68.

Li Auto (NASDAQ:LI - Get Free Report) last released its quarterly earnings data 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 for the quarter. On average, equities analysts predict that Li Auto Inc. Sponsored ADR will post -0.72 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in LI. Mizuho Securities Co. Ltd. purchased a new position in shares of Li Auto in the third quarter valued at $45,000. EverSource Wealth Advisors LLC increased its position in Li Auto by 157.9% in 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. Parallel Advisors LLC increased its position in Li Auto by 39.3% in the third quarter. Parallel Advisors LLC now owns 5,945 shares of the company's stock worth $68,000 after purchasing an additional 1,677 shares during the last quarter. Allspring Global Investments Holdings LLC purchased a new stake in Li Auto during the third quarter valued at $116,000. Finally, Corient Private Wealth LP purchased a new stake in Li Auto during the second quarter valued at $146,000. Institutional investors own 9.88% of the company's stock.

Li Auto Company Profile

Li Auto Inc. is a Chinese automaker that designs, develops, manufactures and sells new energy vehicles, with a focus on family-oriented passenger vehicles. Founded in 2015 by entrepreneur Li Xiang, the company is headquartered in Beijing. Li Auto is known for its range-extended electric vehicles, which use an onboard gasoline engine to generate electricity when needed. Its products have included the Li L-series SUVs and the all-electric Li MEGA multi-purpose vehicle, alongside vehicle software and related services.

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