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Is a Correction Looming Ahead for Li Auto Inc. (LI)

Li Auto Inc. (NASDAQ:LI) went down by -0.23% from its latest closing price compared to the recent 1-year high of $41.49. The company’s stock price has collected -5.72% of loss in the last five trading sessions. Barron’s reported on 08/15/22 that Li Auto Stock Gaining After Terrible Delivery Guidance.

Is It Worth Investing in Li Auto Inc. (NASDAQ :LI) Right Now?

Li Auto Inc. (NASDAQ:LI) scored a price-to-earnings ratio above its average ratio, recording 10280.00 x from its present earnings ratio. Opinions of the stock are interesting as 25 analysts out of 32 who provided ratings for Li Auto Inc. declared the stock was a “buy,” while 4 rated the stock as “overweight,” 3 rated it as “hold,” and 0 as “sell.”

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The average price from analysts is $261.52, which is $14.25 above the current price. LI currently public float of 853.00M and currently shorts hold a 3.69% ratio of that float. Today, the average trading volume of LI was 12.14M shares.

LI’s Market Performance

LI stocks went down by -5.72% for the week, with a monthly drop of -14.05% and a quarterly performance of 31.74%, while its annual performance rate touched 8.17%. The volatility ratio for the week stands at 5.64% while the volatility levels for the past 30 days are set at 5.37% for Li Auto Inc. The simple moving average for the period of the last 20 days is -7.11% for LI stocks with a simple moving average of 5.09% for the last 200 days.

Analysts’ Opinion of LI

HSBC Securities, on the other hand, stated in their research note that they expect to see LI reach a price target of $35. The rating they have provided for LI stocks is “Buy” according to the report published on April 04th, 2022.

China Renaissance gave a rating of “Buy” to LI, setting the target price at $37.20 in the report published on March 24th of the current year.

LI Trading at -11.52% from the 50-Day Moving Average

After a stumble in the market that brought LI to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -25.67% of loss for the given period.

Volatility was left at 5.37%, however, over the last 30 days, the volatility rate increased by 5.64%, as shares sank -15.69% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +3.77% upper at present.

During the last 5 trading sessions, LI fell by -5.72%, which changed the moving average for the period of 200-days by -4.64% in comparison to the 20-day moving average, which settled at $32.92. In addition, Li Auto Inc. saw -3.93% in overturn over a single year, with a tendency to cut further losses.

Stock Fundamentals for LI

Current profitability levels for the company are sitting at:

  • -3.77 for the present operating margin
  • +20.82 for the gross margin

The net margin for Li Auto Inc. stands at -1.19. The total capital return value is set at -2.44, while invested capital returns managed to touch -0.80. Equity return is now at value 0.10, with 0.00 for asset returns.

Based on Li Auto Inc. (LI), the company’s capital structure generated 24.66 points at debt to equity in total, while total debt to capital is 19.78. Total debt to assets is 16.37, with long-term debt to equity ratio resting at 17.85. Finally, the long-term debt to capital ratio is 14.32.

When we switch over and look at the enterprise to sales, we see a ratio of 4.30, with the company’s debt to enterprise value settled at 0.07. The receivables turnover for the company is 123.69 and the total asset turnover is 0.55. The liquidity ratio also appears to be rather interesting for investors as it stands at 4.33.