Li Auto (NASDAQ:LI) Trading Down 4.8% – Time to Sell?

Li Auto Inc. Sponsored ADR (NASDAQ:LI)’s share price dropped 4.8% during mid-day trading on Wednesday . The company traded as low as $16.33 and last traded at $16.4350. Approximately 1,658,165 shares were traded during trading, a decline of 68% from the average daily volume of 5,224,373 shares. The stock had previously closed at $17.27.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on LI. CLSA raised shares of Li Auto to a “strong-buy” rating in a report on Monday, September 22nd. Weiss Ratings reiterated a “sell (d+)” rating on shares of Li Auto in a research note on Monday. Barclays reduced their price objective on Li Auto from $24.00 to $18.00 and set an “equal weight” rating for the company in a research note on Monday, December 1st. China Renaissance reiterated a “hold” rating and issued a $18.50 target price on shares of Li Auto in a research report on Monday, December 1st. Finally, HSBC reissued a “hold” rating and set a $18.60 price target (down from $30.30) on shares of Li Auto in a research report on Wednesday, December 3rd. Two equities research analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating, thirteen have issued a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $21.66.

Li Auto Price Performance

The stock has a market capitalization of $17.24 billion, a price-to-earnings ratio of 28.39 and a beta of 0.50. The company has a quick ratio of 1.67, a current ratio of 1.80 and a debt-to-equity ratio of 0.05. The stock has a fifty day moving average of $18.64 and a 200-day moving average of $23.20.

Institutional Investors Weigh In On Li Auto

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Goldman Sachs Group Inc. lifted its holdings in shares of Li Auto by 133.3% in the 1st quarter. Goldman Sachs Group Inc. now owns 2,636,156 shares of the company’s stock valued at $66,431,000 after purchasing an additional 1,505,991 shares during the last quarter. American Century Companies Inc. boosted its holdings in shares of Li Auto by 4.6% in the third quarter. American Century Companies Inc. now owns 1,355,616 shares of the company’s stock valued at $34,351,000 after acquiring an additional 60,172 shares during the period. Assenagon Asset Management S.A. acquired a new position in shares of Li Auto in the 2nd quarter valued at $30,055,000. Electron Capital Partners LLC purchased a new stake in Li Auto in the 1st quarter valued at $24,658,000. Finally, LMR Partners LLP boosted its stake in Li Auto by 2,697.4% during the 2nd quarter. LMR Partners LLP now owns 675,500 shares of the company’s stock worth $18,313,000 after purchasing an additional 651,353 shares during the period. 9.88% of the stock is currently owned by institutional investors and hedge funds.

Li Auto Company Profile

Li Auto Inc is a Chinese automotive company that develops, manufactures and sells smart electric vehicles, with an early focus on range-extended electric SUVs designed for family use. The company is headquartered in China and serves the domestic market through a combination of online channels and a network of retail/showroom locations. Li Auto was founded to address range-anxiety in electric vehicle buyers by integrating a small internal-combustion engine as a range extender alongside a large battery, enabling longer driving range while retaining electric driving characteristics.

The company’s product lineup centers on multi‑occupant SUVs that combine electric propulsion, advanced in‑vehicle connectivity and driver‑assistance features.