Li Auto (NASDAQ:LI) Shares Gap Down – Should You Sell?

Li Auto Inc. (NASDAQ:LI)’s share price gapped down prior to trading on Thursday . The stock had previously closed at $25.06, but opened at $24.27. Li Auto shares last traded at $23.99, with a volume of 1,001,800 shares.

Analyst Upgrades and Downgrades

A number of research firms have commented on LI. Macquarie reissued a “neutral” rating and issued a $33.00 price objective (up previously from $25.00) on shares of Li Auto in a research note on Friday, October 4th. JPMorgan Chase & Co. reduced their price objective on Li Auto from $21.00 to $19.00 and set a “neutral” rating on the stock in a research note on Thursday, August 29th. Bank of America upped their price target on Li Auto from $30.00 to $31.00 and gave the company a “buy” rating in a research note on Thursday, August 29th. Finally, Citigroup upped their price target on Li Auto from $25.50 to $29.60 and gave the company a “neutral” rating in a research note on Monday, September 30th. Four investment analysts have rated the stock with a hold rating and four have given a buy rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $32.66.

Li Auto Stock Down 4.4 %

The firm has a 50 day simple moving average of $22.34 and a two-hundred day simple moving average of $22.60. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.76 and a quick ratio of 1.63. The stock has a market cap of $25.42 billion, a price-to-earnings ratio of 16.71, a price-to-earnings-growth ratio of 2.54 and a beta of 0.98.

Li Auto (NASDAQ:LI) last released its earnings results on Wednesday, August 28th. The company reported $0.14 earnings per share for the quarter. Li Auto had a return on equity of 13.70% and a net margin of 7.65%. The firm had revenue of $4.36 billion for the quarter. As a group, sell-side analysts expect that Li Auto Inc. will post 1.04 EPS for the current year.

Institutional Investors Weigh In On Li Auto

Large investors have recently modified their holdings of the business. Creative Planning grew its holdings in shares of Li Auto by 39.4% during the third quarter. Creative Planning now owns 23,751 shares of the company’s stock worth $609,000 after buying an additional 6,712 shares in the last quarter. SG Americas Securities LLC boosted its position in Li Auto by 806.4% during the third quarter. SG Americas Securities LLC now owns 167,407 shares of the company’s stock valued at $4,294,000 after purchasing an additional 148,937 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its position in Li Auto by 1,059.2% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 25,028 shares of the company’s stock valued at $447,000 after purchasing an additional 22,869 shares during the last quarter. Susquehanna International Securities Ltd. acquired a new position in Li Auto during the second quarter valued at approximately $257,000. Finally, HITE Hedge Asset Management LLC acquired a new position in Li Auto during the second quarter valued at approximately $478,000. 9.88% of the stock is currently owned by institutional investors.

Li Auto Company Profile

Li Auto Inc operates in the energy vehicle market in the People's Republic of China. It designs, develops, manufactures, and sells premium smart electric vehicles. The company's product line comprises MPVs and sport utility vehicles. It offers sales and after sales management, and technology development and corporate management services, as well as purchases manufacturing equipment.