Li Auto (NASDAQ:LI) Stock Falls 4.3% – Should You Sell?

Li Auto Inc. Sponsored ADR (NASDAQ:LI) shares fell 4.3% during trading on Wednesday. The company traded as low as $11.42 and last traded at $11.4150. Approximately 764,345 shares traded hands during mid-day trading, a decline of 79% from the average session volume of 3,621,795 shares. The stock had previously closed at $11.93.

Analyst Ratings Changes

Several analysts recently commented on the company. Zacks Research raised Li Auto from a “strong sell” rating to a “hold” rating in a report on Friday, October 2nd. Wall Street Zen cut shares of Li Auto from a “sell” rating to a “strong sell” rating in a research note on Sunday, September 6th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Li Auto in a report on Wednesday, August 26th. Piper Sandler decreased their target price on shares of Li Auto from $15.00 to $13.00 and set a “neutral” rating for the company in a research note on Thursday, August 27th. Finally, Sanford C. Bernstein reiterated a “market perform” rating and issued a $14.50 target price on shares of Li Auto in a research note 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.com, the stock has a consensus rating of “Reduce” and a consensus target price of $16.28.

Li Auto Stock Performance

The company has a market cap of $11.88 billion, a PE ratio of -17.11 and a beta of 0.50. The firm’s fifty day moving average is $11.84 and its 200 day moving average is $13.94. The company has a current ratio of 1.81, a quick ratio of 1.65 and a debt-to-equity ratio of 0.11.

Li Auto (NASDAQ:LI) last announced its earnings results 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 during the quarter. As a group, research analysts predict that Li Auto Inc. Sponsored ADR will post -0.71 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. EverSource Wealth Advisors LLC grew its holdings in shares of Li Auto by 157.9% during the first quarter. EverSource Wealth Advisors LLC now owns 2,878 shares of the company’s stock worth $51,000 after buying an additional 1,762 shares in the last quarter. Corient Private Wealth LP purchased a new position in shares of Li Auto in the second quarter worth about $146,000. Parallel Advisors LLC boosted its position in Li Auto by 530.5% during the first quarter. Parallel Advisors LLC now owns 8,915 shares of the company’s stock worth $159,000 after acquiring an additional 7,501 shares during the last quarter. Sowell Financial Services LLC boosted its position in Li Auto by 32.7% during the third quarter. Sowell Financial Services LLC now owns 16,813 shares of the company’s stock worth $191,000 after acquiring an additional 4,141 shares during the last quarter. Finally, QRG Capital Management Inc. grew its stake in Li Auto by 10.5% during the 2nd quarter. QRG Capital Management Inc. now owns 17,003 shares of the company’s stock valued at $200,000 after acquiring an additional 1,615 shares in the last quarter. 9.88% of the stock is owned by institutional investors and hedge funds.

Li Auto Company Profile

Li Auto Inc is a Chinese automaker that designs, develops, manufactures and sells new energy vehicles. The company focuses on smart electric vehicles, including extended-range electric vehicles that combine a battery-powered drivetrain with an onboard engine generator, as well as battery-electric vehicles.

Its product lineup has included the Li ONE and the L-series range-extended electric SUVs, such as the Li L6, Li L7, Li L8 and Li L9. The company has also developed the Li MEGA, a battery-electric multi-purpose vehicle.