WeRide (NASDAQ:WRD) Shares Gap Up - Time to Buy?

Key Points

• WeRide shares gapped up pre-market (previous close $6.35, opened $6.85) but have since traded lower, last at $6.1150 on heavy volume and were down about 2% intraday.
• Analysts are mostly positive—four Buys and one Sell—resulting in a consensus "Moderate Buy" and an average price target of $13.13.
• Firm fundamentals remain weak: WeRide is unprofitable (most recent EPS -$0.24, net margin -329.54%, negative P/E) even as several institutional investors materially increased their stakes.

WeRide Inc. (NASDAQ:WRD - Get Free Report) shares gapped up before the market opened on Monday . The stock had previously closed at $6.35, but opened at $6.85. WeRide shares last traded at $6.1150, with a volume of 4,221,508 shares traded.

Wall Street Analyst Weigh In

Several brokerages have commented on WRD. Weiss Ratings reiterated a "sell (d-)" rating on shares of WeRide in a research report on Monday, December 29th. CLSA initiated coverage on WeRide in a research note on Monday, January 5th. They set an "outperform" rating and a $13.00 price objective for the company. Bank of America assumed coverage on WeRide in a report on Monday, December 1st. They issued a "buy" rating and a $12.00 price objective for the company. Finally, Citigroup reissued a "buy" rating on shares of WeRide in a research note on Monday, January 19th. Four investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $13.13.

WeRide Stock Down 2.0%

The stock has a market cap of $2.02 billion, a price-to-earnings ratio of -7.35 and a beta of 4.36. The stock's fifty day moving average is $7.57 and its 200-day moving average is $8.82.

WeRide (NASDAQ:WRD - Get Free Report) last posted its earnings results on Monday, March 23rd. The company reported ($0.24) earnings per share for the quarter. The firm had revenue of $44.88 million during the quarter. WeRide had a negative return on equity of 24.31% and a negative net margin of 329.54%. As a group, equities research analysts predict that WeRide Inc. will post -0.68 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. China UAE Investment Cooperation Fund L.P. acquired a new position in WeRide in the fourth quarter valued at about $67,443,000. FengHe Fund Management Pte. Ltd. raised its position in shares of WeRide by 198.5% during the fourth quarter. FengHe Fund Management Pte. Ltd. now owns 4,175,181 shares of the company's stock worth $36,241,000 after purchasing an additional 2,776,381 shares during the period. Greenwoods Asset Management Hong Kong Ltd. acquired a new stake in shares of WeRide during the third quarter worth about $26,574,000. Mercer Global Advisors Inc. ADV bought a new position in shares of WeRide during the 3rd quarter valued at about $25,931,000. Finally, Marshall Wace LLP lifted its holdings in shares of WeRide by 4,869.5% during the 3rd quarter. Marshall Wace LLP now owns 2,055,370 shares of the company's stock valued at $20,348,000 after purchasing an additional 2,014,010 shares in the last quarter.

About WeRide

WeRide Inc NASDAQ: WRD is a developer of autonomous driving technology focused on providing Level 4 (L4) self-driving solutions for passenger mobility and logistics. The company's full-stack platform integrates sensors, computing hardware, software algorithms and vehicle controls to enable driverless taxis, shuttles and goods delivery vehicles. By combining perception, planning and controls in a turnkey system, WeRide aims to accelerate the commercialization of robotaxi services and autonomous fleet operations.

Founded in 2017 and headquartered in Guangzhou, China, WeRide maintains research and development centers in Silicon Valley and China.

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