Li Auto Inc. [LI] fell -6.76% so far this year. What now?


Li Auto Inc. [NASDAQ: LI] surged by $0.44 during the normal trading session on Friday and reaching a high of $31.19 during the day while it closed the day at $29.93. The company report on June 1, 2022 that Li Auto Inc. May 2022 Delivery Update.

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Li Auto Inc. (“Li Auto” or the “Company”) (Nasdaq: LI; HKEX: 2015), a leader in China’s new energy vehicle market, today announced that the Company delivered 11,496 Li ONEs in May 2022, up 165.9% year over year. The cumulative deliveries of Li ONE have reached 171,467 since the vehicle’s market debut in 2019.

“Although our parts suppliers in the Yangtze Delta region have gradually resumed production, they have not yet fully recovered and we continue to encounter challenges due to parts supply shortages. As such, our Changzhou manufacturing base has not yet reverted to its normal production level, resulting in delayed deliveries for some of our users. At present, we are actively collaborating with our supply chain partners to restore production capacity, aiming to shorten the delivery waiting time for Li ONE users, while meeting all pandemic prevention and containment requirements,” commented Yanan Shen, co-founder and president of Li Auto.

Li Auto Inc. stock has also gained 14.19% of its value over the past 7 days. However, LI stock has inclined by 35.00% in the 3 months of the year. Over the past six months meanwhile, it has lost -3.73% and lost -6.76% year-on date.

The market cap for LI stock reached $30.85 billion, with 964.87 million shares outstanding and 163.08 million shares in the current float. Compared to the average trading volume of 10.36M shares, LI reached a trading volume of 11223538 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about Li Auto Inc. [LI]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for LI shares is $37.28 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on LI stock is a recommendation set at 1.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

HSBC Securities have made an estimate for Li Auto Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on April 04, 2022. While these analysts kept the previous recommendation, China Renaissance raised their target price to Buy. The new note on the price target was released on March 24, 2022, representing the official price target for Li Auto Inc. stock. Previously, the target price had yet another raise to $38, while Barclays analysts kept a Overweight rating on LI stock.

The Average True Range (ATR) for Li Auto Inc. is set at 1.71, with the Price to Sales ratio for LI stock in the period of the last 12 months amounting to 6.26. The Price to Book ratio for the last quarter was 4.66, with the Price to Cash per share for the same quarter was set at 7.04. Price to Free Cash Flow for LI in the course of the last twelve months was 22.32 with Quick ratio for the last quarter at 3.80.

LI stock trade performance evaluation

Li Auto Inc. [LI] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 14.19. With this latest performance, LI shares gained by 48.68% in over the last four-week period, additionally sinking by -3.73% over the last 6 months – not to mention a rise of 6.47% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for LI stock in for the last two-week period is set at 71.03, with the RSI for the last a single of trading hit 77.76, and the three-weeks RSI is set at 65.04 for Li Auto Inc. [LI]. The present Moving Average for the last 50 days of trading for this stock 24.37, while it was recorded at 29.63 for the last single week of trading, and 27.98 for the last 200 days.

Li Auto Inc. [LI]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Li Auto Inc. [LI] shares currently have an operating margin of -3.77 and a Gross Margin at +20.82. Li Auto Inc.’s Net Margin is presently recorded at -1.19.

Return on Total Capital for LI is now -2.44, given the latest momentum, and Return on Invested Capital for the company is -0.80. Return on Equity for this stock declined to -0.91, with Return on Assets sitting at -0.65. When it comes to the capital structure of this company, Li Auto Inc. [LI] has a Total Debt to Total Equity ratio set at 24.66. Additionally, LI Total Debt to Total Capital is recorded at 19.78, with Total Debt to Total Assets ending up at 16.37. Long-Term Debt to Equity for the company is recorded at 17.85, with the Long-Term Debt to Total Capital now at 14.32.

Reflecting on the efficiency of the workforce at the company, Li Auto Inc. [LI] managed to generate an average of -$32,554 per employee. Receivables Turnover for the company is 123.69 with a Total Asset Turnover recorded at a value of 0.55.Li Auto Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 3.80 and a Current Ratio set at 3.90.

Earnings per share (EPS) analysis for Li Auto Inc. [LI] stock

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for LI. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Li Auto Inc. go to 13.21%.

Li Auto Inc. [LI]: Insider Ownership positions

There are presently around $7,049 million, or 29.40% of LI stock, in the hands of institutional investors. The top three institutional holders of LI stocks are: BLACKROCK INC. with ownership of 29,895,083, which is approximately 3.648% of the company’s market cap and around 0.30% of the total institutional ownership; TIGER GLOBAL MANAGEMENT LLC, holding 19,791,714 shares of the stock with an approximate value of $592.37 million in LI stocks shares; and VANGUARD GROUP INC, currently with $454.42 million in LI stock with ownership of nearly 1.177% of the company’s market capitalization.

145 institutional holders increased their position in Li Auto Inc. [NASDAQ:LI] by around 42,572,374 shares. Additionally, 110 investors decreased positions by around 32,364,865 shares, while 60 investors held positions by with 160,577,011 shares. The mentioned changes placed institutional holdings at 235,514,250 shares, according to the latest SEC report filing. LI stock had 41 new institutional investments in for a total of 4,379,928 shares, while 37 institutional investors sold positions of 4,575,793 shares during the same period.