Li Auto Inc. [LI] is 21.99% higher this YTD. Is it still time to buy?


Li Auto Inc. [NASDAQ: LI] closed the trading session at $39.16 on 07/18/22. The day’s price range saw the stock hit a low of $37.5316, while the highest price level was $40.885. The company report on July 1, 2022 that Li Auto Inc. June 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 13,024 Li ONEs in June 2022, up 68.9% year over year. This brought the Company’s second quarter deliveries to 28,687, representing a 63.2% year-over-year increase. The cumulative deliveries of Li ONE have reached 184,491 since the vehicle’s market debut in 2019.

The Company officially unveiled Li L9 on June 21, 2022, the flagship smart SUV for families. Li L9 is a six-seat, full-size flagship SUV, offering superior space and comfort for family users. Its self-developed flagship range extension and chassis systems provide excellent drivability with a CLTC range of 1,315 kilometers and a WLTC range of 1,100 kilometers. Li L9 also features the Company’s self-developed autonomous driving system, Li AD Max, and top-notch vehicle safety measures to protect every family passenger. Li L9’s innovative five-screen, three-dimensional interactive intelligent cockpit brings a new level of driving and entertainment experience. Li L9 comes standard with over 100 flagship features at a retail price of RMB459,800.

The stocks have a year to date performance of 21.99 percent and weekly performance of 4.90 percent. The stock has been moved at 27.27 percent over the last six months. The stock has performed 20.53 percent around the most recent 30 days and changed 52.31 percent over the most recent 3-months.

If compared to the average trading volume of 11.47M shares, LI reached to a volume of 17568008 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 $44.78 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 2.19, with the Price to Sales ratio for LI stock in the period of the last 12 months amounting to 8.28. The Price to Book ratio for the last quarter was 6.16, with the Price to Cash per share for the same quarter was set at 6.96. Price to Free Cash Flow for LI in the course of the last twelve months was 29.53 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 4.90. With this latest performance, LI shares gained by 20.53% in over the last four-week period, additionally plugging by 27.27% over the last 6 months – not to mention a rise of 29.16% 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 63.81, with the RSI for the last a single of trading hit 62.69, and the three-weeks RSI is set at 63.88 for Li Auto Inc. [LI]. The present Moving Average for the last 50 days of trading for this stock 30.29, while it was recorded at 38.16 for the last single week of trading, and 28.95 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 $9,051 million, or 28.80% 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 $760.99 million in LI stocks shares; and VANGUARD GROUP INC, currently with $583.78 million in LI stock with ownership of nearly 1.177% of the company’s market capitalization.

Positions in Li Auto Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 145 institutional holders increased their position in Li Auto Inc. [NASDAQ:LI] by around 42,411,077 shares. Additionally, 110 investors decreased positions by around 32,308,085 shares, while 59 investors held positions by with 160,672,788 shares. The mentioned changes placed institutional holdings at 235,391,950 shares, according to the latest SEC report filing. LI stock had 41 new institutional investments in for a total of 4,615,198 shares, while 37 institutional investors sold positions of 4,551,897 shares during the same period.