XPENG (NYSE:XPEV) Reaches New 1-Year Low - What's Next?

Key Points

• XPENG shares fell to a new 52-week low of $11.10, pressured by concerns over intensifying China EV price competition and weaker-than-expected third-quarter revenue guidance.
• Second-quarter revenue rose 51.5% sequentially to RMB19.74 billion and gross margin improved to 20.7%, but adjusted EPS missed expectations and continued investment in vehicles, AI and robotics widened losses.
• XPeng’s robotics subsidiary raised more than $900 million at a valuation above $6.3 billion, offering a potential growth catalyst; however, analyst sentiment remains mixed, with a consensus “Hold” rating and a $25.70 target price.

XPENG Inc. Sponsored ADR (NYSE:XPEV - Get Free Report) shares hit a new 52-week low on Tuesday . The stock traded as low as $11.10 and last traded at $11.1410, with a volume of 26394639 shares changing hands. The stock had previously closed at $12.19.

XPENG News Summary

Here are the key news stories impacting XPENG this week:

• Positive Sentiment: XPeng’s robotics subsidiary raised more than $900 million at a post-money valuation exceeding $6.3 billion, led by IDG Capital and Gaorong Ventures with strategic participation from Tencent and Alibaba. The funding supports development and planned mass production of the IRON humanoid robot, potentially giving XPeng a valuable physical-AI growth platform. XPENG robotics financing announcement
• Positive Sentiment: Second-quarter operating metrics showed total revenue of RMB19.74 billion, up 51.5% quarter over quarter, while gross margin improved to 20.7%. Vehicle margin remained relatively stable at 12.1%, and the company ended June with RMB40.48 billion in cash and cash equivalents. XPeng second-quarter financial results
• Neutral Sentiment: Unusually heavy options activity included purchases of 42,118 call options, 65% above average call volume. This may indicate speculative bullish positioning, but it does not necessarily represent sustained investor conviction.
• Negative Sentiment: Second-quarter adjusted EPS was a loss of $0.19, substantially worse than the expected loss of $0.06. Revenue also missed the approximately RMB20.50 billion consensus estimate, while continued investment in new vehicles, AI and robotics contributed to a wider net loss. XPeng earnings report
• Negative Sentiment: XPeng’s third-quarter revenue forecast fell below Wall Street expectations as China’s EV price war intensifies. The guidance renewed concerns about delivery growth, pricing power and near-term profitability in the company’s main automotive business. Reuters report on XPeng’s forecast

Wall Street Analyst Weigh In

Several research firms recently issued reports on XPEV. Bank of America reaffirmed a "buy" rating on shares of XPENG in a research report on Thursday, May 28th. Wall Street Zen cut XPENG from a "hold" rating to a "sell" rating in a research report on Sunday, May 24th. Barclays reduced their price objective on XPENG from $16.00 to $15.00 and set an "underweight" rating for the company in a research note on Thursday, July 16th. Weiss Ratings cut shares of XPENG from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Wednesday, August 12th. Finally, Jefferies Financial Group reissued a "buy" rating and set a $25.20 price target on shares of XPENG in a report on Friday, May 29th. Two analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and four have given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $25.70.

XPENG Stock Performance

The firm has a market capitalization of $10.64 billion, a PE ratio of -32.77 and a beta of 1.13. The business has a 50-day simple moving average of $12.71 and a 200-day simple moving average of $15.56. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.14 and a quick ratio of 0.89.

XPENG (NYSE:XPEV - Get Free Report) last announced its earnings results on Thursday, May 28th. The company reported ($0.27) EPS for the quarter, missing analysts' consensus estimates of ($0.11) by ($0.16). XPENG had a negative return on equity of 7.72% and a negative net margin of 3.09%.The company had revenue of $1.89 billion during the quarter, compared to analysts' expectations of $1.87 billion. Equities research analysts expect that XPENG Inc. Sponsored ADR will post -0.39 earnings per share for the current fiscal year.

Institutional Investors Weigh In On XPENG

Hedge funds and other institutional investors have recently made changes to their positions in the company. Farther Finance Advisors LLC lifted its holdings in shares of XPENG by 161.4% in the 4th quarter. Farther Finance Advisors LLC now owns 2,562 shares of the company's stock worth $52,000 after acquiring an additional 1,582 shares during the last quarter. EverSource Wealth Advisors LLC grew its holdings in XPENG by 45.0% during the 4th quarter. EverSource Wealth Advisors LLC now owns 3,906 shares of the company's stock valued at $79,000 after purchasing an additional 1,212 shares during the last quarter. TD Waterhouse Canada Inc. grew its holdings in XPENG by 91.4% during the 2nd quarter. TD Waterhouse Canada Inc. now owns 6,680 shares of the company's stock valued at $91,000 after purchasing an additional 3,190 shares during the last quarter. Parallel Advisors LLC raised its position in XPENG by 6.0% in the 4th quarter. Parallel Advisors LLC now owns 10,293 shares of the company's stock worth $209,000 after purchasing an additional 584 shares during the period. Finally, Greenleaf Trust raised its position in XPENG by 18.3% in the 2nd quarter. Greenleaf Trust now owns 19,075 shares of the company's stock worth $253,000 after purchasing an additional 2,948 shares during the period. Hedge funds and other institutional investors own 21.09% of the company's stock.

About XPENG

XPENG Inc NYSE: XPEV is a China-based developer and manufacturer of smart electric vehicles. The company designs, engineers and sells battery-electric sedans and sport-utility vehicles along with related software and services. Founded in 2014, XPENG positions itself as a technology-driven automaker with a focus on vehicle connectivity, software-defined features and advanced driver assistance systems.

Product offerings center on passenger EVs spanning compact crossovers and midsize sedans, supported by in-house software platforms and over-the-air update capabilities.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source