XPENG Sees Unusually Large Options Volume (NYSE:XPEV)

Key Points

• XPENG saw unusually heavy call-option activity, with 42,118 calls purchased—65% above its typical volume. The stock fell 7.5% to $11.28 on trading volume more than double its average.
• The company’s robotics subsidiary raised over $900 million at a valuation exceeding $6.3 billion, while second-quarter revenue and margins improved substantially. However, vehicle deliveries were essentially flat year over year.
• Investor concerns remain over XPENG’s wider-than-expected loss and below-consensus third-quarter revenue outlook amid intense Chinese EV competition. Analyst sentiment is mixed, with an overall “Hold” rating and an average price target of $25.70.

XPENG Inc. Sponsored ADR (NYSE:XPEV - Get Free Report) was the recipient of unusually large options trading on Monday. Stock investors bought 42,118 call options on the stock. This represents an increase of 65% compared to the typical volume of 25,507 call options.

XPENG Trading Down 7.5%

Shares of XPEV stock traded down $0.92 on Monday, hitting $11.28. 14,377,510 shares of the stock traded hands, compared to its average volume of 6,867,365. The company has a debt-to-equity ratio of 0.48, a quick ratio of 0.89 and a current ratio of 1.14. XPENG has a twelve month low of $11.27 and a twelve month high of $28.24. The firm's 50-day moving average price is $12.78 and its two-hundred day moving average price is $15.60. The stock has a market capitalization of $10.77 billion, a PE ratio of -32.98 and a beta of 1.13.

XPENG (NYSE:XPEV - Get Free Report) last issued its earnings results on Tuesday, August 25th. The company reported ($0.19) EPS for the quarter, missing analysts' consensus estimates of ($0.06) by ($0.13). The firm had revenue of $2.91 billion for the quarter, compared to analysts' expectations of $3.02 billion. XPENG had a negative return on equity of 7.72% and a negative net margin of 3.09%. As a group, analysts anticipate that XPENG will post -0.39 EPS for the current year.

More XPENG News

Here are the key news stories impacting XPENG this week:

• Positive Sentiment: XPENG’s robotics subsidiary raised more than $900 million in its first funding round at a post-money valuation exceeding $6.3 billion. The financing, led by IDG Capital and Gaorong Ventures with Tencent and Alibaba participating as strategic investors, provides capital for physical-AI and humanoid-robot development while establishing a potentially valuable standalone asset. XPENG robotics financing announcement
• Neutral Sentiment: Second-quarter total revenue rose to RMB19.74 billion, up 51.5% from the prior quarter, while gross margin improved to 20.7% and vehicle margin reached 12.1%. XPENG also ended June with RMB40.48 billion in cash and cash equivalents. However, vehicle deliveries of 103,295 were essentially flat from a year earlier, highlighting the challenge of converting improved margins into sustained growth. XPENG second-quarter financial results
• Negative Sentiment: XPENG reported an adjusted loss of $0.19 per share, wider than analysts’ expected $0.06 loss, and revenue of about $2.91 billion versus the $3.02 billion consensus. The net loss widened as the company increased spending on new vehicle models, artificial intelligence and robotics, despite resilient margins. XPENG net loss report
• Negative Sentiment: Management’s third-quarter revenue forecast fell below Wall Street expectations, reflecting intensifying competition in China’s electric-vehicle market. The weaker guidance raised concerns about near-term demand, pricing pressure and continued losses, causing the earnings miss to outweigh enthusiasm over the robotics valuation. Reuters report on XPENG forecast

Analysts Set New Price Targets

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

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in XPEV. Parallel Advisors LLC boosted its holdings in shares of XPENG by 6.0% in the fourth quarter. Parallel Advisors LLC now owns 10,293 shares of the company's stock valued at $209,000 after acquiring an additional 584 shares in the last quarter. Valeo Financial Advisors LLC raised its holdings in XPENG by 0.3% during the second quarter. Valeo Financial Advisors LLC now owns 387,230 shares of the company's stock worth $5,127,000 after purchasing an additional 1,052 shares in the last quarter. SBI Securities Co. Ltd. lifted its position in XPENG by 7.7% in the fourth quarter. SBI Securities Co. Ltd. now owns 16,535 shares of the company's stock valued at $335,000 after purchasing an additional 1,186 shares during the period. EverSource Wealth Advisors LLC boosted its holdings in XPENG by 45.0% in 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 in the last quarter. Finally, Farther Finance Advisors LLC increased its position in XPENG by 161.4% during the 4th quarter. Farther Finance Advisors LLC now owns 2,562 shares of the company's stock worth $52,000 after purchasing an additional 1,582 shares during the period. 21.09% of the stock is currently owned by institutional investors and hedge funds.

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.

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