Li Auto (NASDAQ:LI) Shares Gap Up – Should You Buy?

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 changing hands.

Wall Street Analyst Weigh In

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

Li Auto Trading Up 1.7%

The firm has a market cap of $13.00 billion, a PE ratio of -18.72 and a beta of 0.40. 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 company’s 50 day moving average price is $11.59 and its two-hundred day moving average price is $14.68.

Li Auto (NASDAQ:LI) last released its quarterly earnings results on Friday, July 31st. The company reported ($0.22) EPS 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, sell-side analysts forecast that Li Auto Inc. Sponsored ADR will post -0.72 EPS for the current year.

Institutional Trading of Li Auto

Several institutional investors have recently added to or reduced their stakes in the company. Barometer Capital Management Inc. purchased a new stake in shares of Li Auto in the first quarter worth approximately $1,548,000. Quantinno Capital Management LP lifted its stake in shares of Li Auto by 160.6% during the 1st quarter. Quantinno Capital Management LP now owns 192,668 shares of the company’s stock worth $3,435,000 after acquiring an additional 118,733 shares during the last quarter. Headlands Technologies LLC bought a new stake in shares of Li Auto during the 2nd quarter worth approximately $1,133,000. Xiamen Xinweidachuang Investment Partnership Limited Partnership purchased a new position in Li Auto during the 2nd quarter valued at $57,833,177. Finally, Nykredit A S purchased a new position in Li Auto during the 2nd quarter valued at $816,000. Institutional investors own 9.88% of the company’s stock.

Li Auto Company Profile

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.