Li Auto Inc. [LI] is -54.27% lower this YTD. Is it still time to buy?

Li Auto Inc. [NASDAQ: LI] stock went on a downward path that fall over -17.39% on Monday, amounting to a one-week price decrease of less than -22.53%. The company report on September 30, 2022 that Li Auto Inc. September 2022 Delivery Update.


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“Our delivery of over 10,000 Li L9s in September marks the first time a domestic branded premium model priced above RMB400,000 has achieved this monthly delivery milestone, establishing Li L9 as one of the top choices of full-size SUV for family users in China. As a full-size SUV priced at RMB459,800, Li L9’s outstanding sales performance is a testament to our ongoing efforts to build and refine our in-house research and development, supply chain, and intelligent manufacturing capabilities,” commented Yanan Shen, co-founder and president of Li Auto. “Thanks to these capabilities, we also have received positive user feedback on our two newest models, Li L8, a six-seat, large premium smart SUV for families, and Li L7, a five-seat, large flagship smart SUV for families, which debuted on September 30. Li L8 showroom models will start to arrive at Li Auto retail stores nationwide today, and we welcome everyone to visit our retail stores for a closer look. The delivery of Li L8 will commence in November.”.

Over the last 12 months, LI stock dropped by -54.54%. The one-year Li Auto Inc. stock forecast points to a potential upside of 64.49. The average equity rating for LI stock is currently 1.80, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $15.07 billion, with 965.40 million shares outstanding and 864.07 million shares in the current float. Compared to the average trading volume of 9.49M shares, LI stock reached a trading volume of 37130785 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 $41.34 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 1.80. 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 1.82, with the Price to Sales ratio for LI stock in the period of the last 12 months amounting to 2.96. The Price to Book ratio for the last quarter was 2.41, with the Price to Cash per share for the same quarter was set at 6.81. Price to Free Cash Flow for LI in the course of the last twelve months was 12.12 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 -22.53. With this latest performance, LI shares dropped by -41.28% in over the last four-week period, additionally sinking by -34.20% over the last 6 months – not to mention a drop of -54.54% 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 25.26, with the RSI for the last a single of trading hit 22.04, and the three-weeks RSI is set at 27.90 for Li Auto Inc. [LI]. The present Moving Average for the last 50 days of trading for this stock 24.87, while it was recorded at 17.09 for the last single week of trading, and 27.78 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 $3,346 million, or 28.40% of LI stock, in the hands of institutional investors. The top three institutional holders of LI stocks are: BLACKROCK INC. with ownership of 29,362,758, 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 $281.28 million in LI stocks shares; and BAILLIE GIFFORD & CO, currently with $188.76 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 November and at the time of the November reporting period, where 148 institutional holders increased their position in Li Auto Inc. [NASDAQ:LI] by around 36,890,297 shares. Additionally, 142 investors decreased positions by around 46,439,238 shares, while 37 investors held positions by with 144,579,673 shares. The mentioned changes placed institutional holdings at 227,909,208 shares, according to the latest SEC report filing. LI stock had 53 new institutional investments in for a total of 6,431,732 shares, while 43 institutional investors sold positions of 15,717,556 shares during the same period.

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