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

Li Auto Inc. (NASDAQ:LI)’s stock price gapped down prior to trading on Thursday . The stock had previously closed at $28.94, but opened at $26.55. Li Auto shares last traded at $25.63, with a volume of 3,876,800 shares trading hands.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the company. Bank of America upped their target price on Li Auto from $30.00 to $31.00 and gave the stock a “buy” rating in a report on Thursday, August 29th. JPMorgan Chase & Co. dropped their price objective on shares of Li Auto from $21.00 to $19.00 and set a “neutral” rating for the company in a report on Thursday, August 29th. Macquarie reiterated a “neutral” rating and set a $33.00 target price (up from $25.00) on shares of Li Auto in a research report on Friday, October 4th. Finally, Citigroup upped their price target on shares of Li Auto from $25.50 to $29.60 and gave the company a “neutral” rating in a research report 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 currently has a consensus rating of “Moderate Buy” and a consensus target price of $32.66.

Li Auto Trading Up 0.2 %

The stock has a market capitalization of $26.59 billion, a P/E ratio of 18.70, a P/E/G ratio of 5.91 and a beta of 0.98. The firm’s 50 day simple moving average is $23.90 and its two-hundred day simple moving average is $22.35. The company has a quick ratio of 1.63, a current ratio of 1.76 and a debt-to-equity ratio of 0.14.

Li Auto (NASDAQ:LI) last issued 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 company had revenue of $4.36 billion for the quarter. As a group, analysts forecast that Li Auto Inc. will post 1.04 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Li Auto

A number of institutional investors and hedge funds have recently bought and sold shares of LI. Mirae Asset Global Investments Co. Ltd. increased its stake in Li Auto by 2,556.7% in the 3rd quarter. Mirae Asset Global Investments Co. Ltd. now owns 3,630,537 shares of the company’s stock valued at $93,503,000 after buying an additional 3,493,881 shares during the last quarter. BNP PARIBAS ASSET MANAGEMENT Holding S.A. purchased a new stake in shares of Li Auto during the second quarter valued at approximately $21,626,000. SIH Partners LLLP boosted its position in Li Auto by 508.2% in the first quarter. SIH Partners LLLP now owns 890,900 shares of the company’s stock worth $26,976,000 after purchasing an additional 744,419 shares during the last quarter. American Century Companies Inc. grew its stake in Li Auto by 20.5% in the 2nd quarter. American Century Companies Inc. now owns 726,684 shares of the company’s stock valued at $12,993,000 after purchasing an additional 123,838 shares during the period. Finally, Ariose Capital Management Ltd purchased a new stake in shares of Li Auto during the 3rd quarter valued at $18,099,000. 9.88% of the stock is owned by hedge funds and other institutional investors.

About Li Auto

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.