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

Li Auto Inc. (NASDAQ:LI) experienced a notable increase in its share price, rising by 3.7% on Wednesday. The stock peaked at $23.41 during the trading session and concluded at $23.23. In total, 3,909,193 shares were traded, reflecting a significant decrease of 50% compared to the average trading volume of 7,769,406 shares. Prior to this rise, the stock had closed at $22.40.

Analysts Project Positive Growth

Wall Street analysts are optimistic about Li Auto shares, indicating a prediction for growth. Bank of America recently raised its target price for the company's stock from $30.00 to $31.00, assigning it a "buy" rating in a report published on August 29th. Similarly, Citigroup adjusted its price objective up from $25.50 to $29.60 and categorized the stock as "neutral" on September 30th. Macquarie reiterated its "neutral" rating while increasing its target to $33.00, up from $25.00, as reported on October 4th.

Conversely, JPMorgan Chase & Co. reduced their target price from $21.00 to $19.00, maintaining a "neutral" stance on the shares in their report from August 29th. Additionally, Barclays enhanced their price target from $22.00 to $31.00, providing an "equal weight" rating on November 4th. The consensus among analysts reveals that four rated the stock as a "hold," while another four advised a "buy" rating. Data from MarketBeat shows a consensus rating of "Moderate Buy" with an average price target set at $33.94.

Li Auto Trading Overview

The stock of Li Auto holds a quick ratio of 1.64, and a current ratio of 1.76, which indicates a relatively healthy liquidity position. The company's debt-to-equity ratio is quite low at 0.13. Current average prices for the stock are hovering around $24.35 for its 50-day moving average and $21.91 for the 200-day moving average. With a market capitalization of $24.15 billion, the stock has a price-earnings (PE) ratio of 16.86, a price-earnings to growth (PEG) ratio of 2.18, and a beta of 0.94.

Institutional Stake in Li Auto

Several institutional investors and hedge funds have altered their stakes in Li Auto recently. Blue Trust Inc. increased its holdings by a remarkable 1,707.4% during the second quarter, acquiring an additional 1,844 shares to total 1,952 shares worth $35,000. Allspring Global Investments Holdings LLC entered the fray in the third quarter with a new stake valued at $39,000, while Venturi Wealth Management LLC also established a new stake worth $50,000.

Further, BNP Paribas boosted its stake by 300% in the third quarter, now owning 2,000 shares valued at $51,000 after purchasing an additional 1,500 shares. Avior Wealth Management LLC also lifted its position by an astonishing 708.5% during the same quarter. In total, institutional investors currently hold about 9.88% of Li Auto's stock.

About Li Auto Inc.

Li Auto Inc. operates within the electric vehicle sector in the People's Republic of China, focusing on the design, development, manufacturing, and sales of premium smart electric vehicles. Their product lineup includes multipurpose vehicles (MPVs) and sport utility vehicles (SUVs), in addition to providing sales and after-sales management, technology development, and corporate management services.

Considerations for Investors

Those considering investing $1,000 in Li Auto should take note that while the stock currently has a "Moderate Buy" rating among analysts, some top-rated analysts suggest there are potentially better buying opportunities elsewhere. It is essential for investors to conduct thorough research and consider various factors before making any investment decisions.

For a comprehensive view on stock opportunities, investors can further explore potential alternatives in the market.

Li, Auto, Stocks, Growth, Investors