Li Auto (NASDAQ:LI) Stock Price Up 3.7% - Here's Why

Li Auto Inc. (NASDAQ:LI) experienced a stock price increase of 3.7% on Wednesday, climbing from its previous close of $22.40 to a high of $23.41 before settling at $23.23. A total of 3,909,193 shares were traded during the day, marking a significant decline of 50% compared to the usual trading volume of 7,769,406 shares.

Wall Street Analysts Forecast Growth

Numerous analysts are optimistic about LI shares. Bank of America recently raised its price target for Li Auto from $30.00 to $31.00 and maintained a "buy" rating in a research note dated August 29. Citigroup also increased its target from $25.50 to $29.60, assigning a "neutral" rating in a report on September 30. Macquarie reaffirmed a "neutral" rating and raised its target price to $33.00 from a previous $25.00 on October 4. Conversely, JPMorgan Chase reduced its target from $21.00 to $19.00, keeping a "neutral" stance on the stock. Barclays followed suit by increasing its target on November 4 from $22.00 to $31.00, also giving the stock an "equal weight" rating. Currently, four analysts recommend holding the stock while another four suggest buying, leading to a consensus rating of "Moderate Buy" and an average price target of $33.94 based on MarketBeat data.

Li Auto Trading Metrics

The company's financial metrics indicate a solid standing with a quick ratio of 1.64 and a current ratio of 1.76, alongside a healthy debt-to-equity ratio of 0.13. The stock's 50-day moving average sits at $24.35, while the 200-day moving average is at $21.91. With a market capitalization of $24.15 billion, the stock has a PE ratio of 16.86, a PEG ratio of 2.18, and a beta of 0.94, suggesting it is less volatile than the broader market.

Institutional Trading Activity

Institutional investors have shown increasing interest in Li Auto shares. For instance, Blue Trust Inc. ramped up its stake in the second quarter by an astonishing 1,707.4%, now holding 1,952 shares valued at approximately $35,000. Allspring Global Investments Holdings LLC entered a new investment in Li Auto worth $39,000 in Q3. Furthermore, Venturi Wealth Management LLC acquired a fresh stake estimated at $50,000. BNP Paribas significantly raised its stake by 300% in Q3, owning 2,000 shares valued at $51,000 after adding 1,500 shares during the quarter. Avior Wealth Management LLC also increased its holdings by 708.5% in the same period, now owning 2,385 shares valued at $61,000. Currently, 9.88% of Li Auto's shares are owned by institutional investors.

About Li Auto

Li Auto Inc. operates within the energy vehicle sector in China, focusing on designing, developing, manufacturing, and selling premium smart electric vehicles. Its product offerings include multi-purpose vehicles (MPVs) and sport utility vehicles (SUVs), and it also provides sales and after-sales management along with technology development services.

Final Thoughts

With the stock trending upwards and analysts projecting positive growth, investors may find potential in Li Auto moving forward. However, a careful consideration of market conditions and personal investment strategies is always advisable.

LiAuto, Stocks, Market