Li Auto Inc. [LI] Stock trading around $26.06 per share: What’s Next?

Li Auto Inc. [NASDAQ: LI] stock went on a downward path that fall over -1.03% on Monday, amounting to a one-week price decrease of less than -1.96%. The company report on September 1, 2022 that Li Auto Inc. August 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 4,571 vehicles in August 2022. The Company’s cumulative deliveries reached 199,484 as of the end of August.

“We are pleased to have commenced deliveries of our flagship smart SUV, Li L9, and to have heard from Li L9’s initial users that it exceeded their expectations,” commented Yanan Shen, co-founder and president of Li Auto. “Meanwhile, we are preparing for the launch of Li L8 in early November, with delivery beginning in the same month. Li L8 is a large premium smart SUV for families. The model will be available in two variants, a six-seater and a VIP five-seater, to broadly cater to diverse family groups.”.

Over the last 12 months, LI stock dropped by -13.68%. The one-year Li Auto Inc. stock forecast points to a potential upside of 39.88. The average equity rating for LI stock is currently 1.70, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $26.76 billion, with 965.40 million shares outstanding and 864.07 million shares in the current float. Compared to the average trading volume of 11.62M shares, LI stock reached a trading volume of 9658122 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on 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 $43.35 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.

CLSA have made an estimate for Li Auto Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on August 08, 2022. While these analysts kept the previous recommendation, HSBC Securities raised their target price to Buy. The new note on the price target was released on April 04, 2022, representing the official price target for Li Auto Inc. stock. Previously, the target price had yet another raise to $37.20, while China Renaissance analysts kept a Buy rating on LI stock.

The Average True Range (ATR) for Li Auto Inc. is set at 1.53, with the Price to Sales ratio for LI stock in the period of the last 12 months amounting to 5.07. The Price to Book ratio for the last quarter was 4.13, with the Price to Cash per share for the same quarter was set at 7.06. Price to Free Cash Flow for LI in the course of the last twelve months was 20.75 with Quick ratio for the last quarter at 3.10.

LI Stock Performance Analysis:

Li Auto Inc. [LI] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -1.96. With this latest performance, LI shares dropped by -20.33% in over the last four-week period, additionally plugging by 17.55% over the last 6 months – not to mention a drop of -13.68% 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 29.59, with the RSI for the last a single of trading hit 25.62, and the three-weeks RSI is set at 34.11 for Li Auto Inc. [LI]. The present Moving Average for the last 50 days of trading for this stock 32.89, while it was recorded at 26.30 for the last single week of trading, and 29.13 for the last 200 days.

Insight into Li Auto Inc. 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 3.10 and a Current Ratio set at 3.20.

LI Stock EPS

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 Position Details

There are presently around $5,990 million, or 28.50% of LI stock, in the hands of institutional investors. The top three institutional holders of LI stocks are: BLACKROCK INC. with ownership of 29,362,758, which is approximately -1.781% of the company’s market cap and around 0.04% of the total institutional ownership; VANGUARD GROUP INC, holding 19,160,515 shares of the stock with an approximate value of $499.32 million in LI stocks shares; and BAILLIE GIFFORD & CO, currently with $335.09 million in LI stock with ownership of nearly -2.792% 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 155 institutional holders increased their position in Li Auto Inc. [NASDAQ:LI] by around 38,527,840 shares. Additionally, 142 investors decreased positions by around 45,033,140 shares, while 39 investors held positions by with 146,292,103 shares. The mentioned changes placed institutional holdings at 229,853,083 shares, according to the latest SEC report filing. LI stock had 58 new institutional investments in for a total of 7,887,663 shares, while 42 institutional investors sold positions of 14,154,420 shares during the same period.

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