Li Auto (NASDAQ:LI) Shares Gap Up – Still a Buy?

Shares of Li Auto Inc. Sponsored ADR (NASDAQ:LI) 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.

Wall Street Analyst Weigh In

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

Li Auto Price Performance

The company has a quick ratio of 1.65, a current ratio of 1.81 and a debt-to-equity ratio of 0.11. The business’s 50-day moving average is $11.60 and its two-hundred day moving average is $14.64. The company has a market capitalization of $12.12 billion, a P/E ratio of -17.47 and a beta of 0.40.

Li Auto (NASDAQ:LI) last released its quarterly earnings results on Friday, July 31st. The company reported ($0.22) earnings per share for the quarter. Li Auto had a negative return on equity of 6.58% and a negative net margin of 4.44%. The firm had revenue of $3.78 billion for the quarter. As a group, analysts predict that Li Auto Inc. Sponsored ADR will post -0.72 earnings per share for the current year.

Hedge Funds Weigh In On Li Auto

A number of hedge funds and other institutional investors have recently modified their holdings of LI. EverSource Wealth Advisors LLC lifted its holdings in 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 acquiring an additional 1,762 shares during the period. Mizuho Securities Co. Ltd. bought a new position in Li Auto in the 3rd quarter valued at $45,000. Parallel Advisors LLC increased its position in shares of Li Auto by 39.3% during the 3rd quarter. Parallel Advisors LLC now owns 5,945 shares of the company’s stock valued at $68,000 after purchasing an additional 1,677 shares during the last quarter. Allspring Global Investments Holdings LLC purchased a new stake in shares of Li Auto during the 3rd quarter valued at $116,000. Finally, Corient Private Wealth LP purchased a new stake in shares of Li Auto during the 2nd quarter valued at $146,000. Hedge funds and other institutional investors own 9.88% of the company’s stock.

About Li Auto

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.