Li Auto (NASDAQ:LI) Sees Significant Increase in Trading Volume - Is It the Right Time to Invest?

Shares of Li Auto Inc. (NASDAQ:LI) experienced a notable surge in trading volume recently, with around 5,836,405 shares changing hands on Friday. This represents a substantial increase of 29% compared to the previous session's volume of 4,522,601 shares. At the last trade, the stock price was $28.02, up from the prior closing price of $26.37.

Analyst Insights

Several research analysts have recently provided updates regarding Li Auto shares. Notably, Barclays raised its price target for the stock from $22.00 to $31.00, while maintaining an "equal weight" rating in a report dated November 4th. Additionally, Macquarie upgraded its rating from "neutral" to "outperform" on February 6th. The current consensus among analysts indicates a "Moderate Buy" rating with an average price target projected at $32.77.

Li Auto's Stock Performance

The company's fifty-day moving average stands at $23.90, with a two-hundred-day moving average of $23.34. Li Auto holds a debt-to-equity ratio of 0.13, a current ratio of 1.76, and a quick ratio of 1.64. Its market cap is approximately $29.24 billion, with a price-to-earnings (P/E) ratio of 20.42 and a P/E/G ratio of 3.28. The stock is considered to have a beta of 0.92, indicating lower volatility compared to the broader market.

Institutional Investments in Li Auto

Recently, several large investors have increased or decreased their holdings in Li Auto. Mirae Asset Global Investments Co. Ltd. significantly raised its stake by 2,556.7% during the third quarter, now owning 3,630,537 shares valued at around $93,503,000 after acquiring an additional 3,493,881 shares. Similarly, Connor Clark & Lunn Investment Management Ltd. increased its position by 27.7%, holding 432,988 shares worth $11,106,000 post-purchase. Additionally, Barclays PLC raised its stake by 41.8%, now owning 602,028 shares valued at $15,442,000. Overall, institutional investors currently own approximately 9.88% of Li Auto's stock.

About Li Auto

Li Auto Inc. operates within the electric vehicle (EV) market in China. The company focuses on designing, developing, manufacturing, and selling premium smart electric vehicles, including multi-purpose vehicles (MPVs) and sport utility vehicles (SUVs). Alongside vehicle sales, Li Auto also provides after-sales services, technology development, and corporate management functions.

Investment Considerations

Before making a decision to invest in Li Auto, investors are encouraged to conduct thorough research and consider various analysts’ insights. While Li Auto has a "Moderate Buy" rating, some analysts have identified other stocks as potentially better investments at this time.

Li, Auto, Stocks