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

Li Auto Inc. Sponsored ADR (NASDAQ:LI)’s stock price gapped up before the market opened on Thursday. The stock had previously closed at $11.70, but opened at $11.98. Li Auto shares last traded at $11.9210, with a volume of 408,644 shares.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on LI. Zacks Research lowered shares of Li Auto from a “hold” rating to a “strong sell” rating in a research note on Friday, August 28th. Wall Street Zen cut Li Auto from a “sell” rating to a “strong sell” rating in a report on Sunday, September 6th. Sanford C. Bernstein restated a “market perform” rating and issued a $14.50 target price on shares of Li Auto in a research report on Wednesday, August 26th. Barclays lowered their price target on Li Auto from $18.00 to $14.00 and set an “equal weight” rating on the stock in a research note on Friday, May 29th. Finally, Piper Sandler reduced their price objective on Li Auto from $15.00 to $13.00 and set a “neutral” rating for the company in a research note on Thursday, August 27th. Ten analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat.com, Li Auto has an average rating of “Reduce” and an average price target of $16.28.

Li Auto Price Performance

The company has a debt-to-equity ratio of 0.11, a current ratio of 1.81 and a quick ratio of 1.65. The stock has a 50 day simple moving average of $12.37 and a two-hundred day simple moving average of $14.72. The company has a market cap of $11.35 billion, a price-to-earnings ratio of -17.16 and a beta of 0.55.

Li Auto (NASDAQ:LI) last announced its quarterly earnings results on Friday, July 31st. The company reported ($0.22) earnings per share (EPS) for the quarter. The firm had revenue of $3.78 billion for the quarter. Li Auto had a negative return on equity of 6.58% and a negative net margin of 4.44%. On average, equities research analysts predict that Li Auto Inc. Sponsored ADR will post -0.28 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the stock. EverSource Wealth Advisors LLC increased its position 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 valued at $51,000 after acquiring an additional 1,762 shares during the last quarter. Corient Private Wealth LP acquired a new position in shares of Li Auto in the 2nd quarter worth approximately $146,000. Parallel Advisors LLC lifted its holdings in shares of Li Auto by 530.5% in the 1st 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. Alpine Global Management LLC purchased a new position in shares of Li Auto during the 4th quarter worth approximately $175,000. Finally, QRG Capital Management Inc. boosted its position in shares of Li Auto by 10.5% during the 2nd quarter. QRG Capital Management Inc. now owns 17,003 shares of the company’s stock worth $200,000 after purchasing an additional 1,615 shares during the period. Hedge funds and other institutional investors own 9.88% of the company’s stock.

About Li Auto

Li Auto Inc (NASDAQ: LI) is a Chinese new energy vehicle manufacturer that develops, manufactures and sells smart electric vehicles. The company has focused primarily on family-oriented vehicles, combining battery-electric powertrains with extended-range electric vehicle technology designed to provide additional driving range through an onboard engine-generator.

Li Auto’s product portfolio has included the Li ONE and the Li L-series of premium sport utility vehicles, including the L6, L7, L8 and L9.