Well positioned to deliver growth? – Li Auto Inc. (LI), Riot Blockchain Inc. (RIOT)

Li Auto Inc. (NASDAQ: LI) shares are -0.97% down in the year-to-date (YTD) period and have moved -7.39% or -$1.3 lower in the latest trading session. If we look at the shorter duration, its week performance is -4.62% and 1.87% over the month.

Analyst Recommendations

7 analysts offering the recommendations for the stock have a consensus rating of 1.60 to suggest that the LI stock is a “Strong Buy. 0 of the 7 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 5 recommend buying, with 1 rating it as an Overweight.

The stock currently trades at $16.30 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $19.76. The forecasts give the Li Auto Inc. stock a price target range of $22.00 on the higher side while at least one analyst think the stock could plunge to a low of $10.00. The two limits represent an upside potential of 25.91% or -63.0%.

Earnings Forecast

Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.06 and -$0.04. Wall Street estimates earnings per share to be at an average of -$0.28 for the next year.

Riot Blockchain Inc. (NASDAQ:RIOT), on the other hand, is trading around $3.50 with a market cap of $151.13M and analyst research firms have a negative stance on its shares. Some analysts are even forecasting -$0.51 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Riot Blockchain Inc. (RIOT) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

RIOT’s operating expenses over the recent quarter were at $12.91 million. This represented a -564.88% of the company’s total revenues which amounted $1.94 million. With this in place, we can see that the company’s diluted EPS declined -$0.31 on the year-over-year period, shrinking to -$0.08 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Sep 2020), the total assets figure advanced to $29.87 million from $37.07 million over the previous quarter. The cash flow from operating activities totaled -$5.29 million, significantly higher than the -$8.18 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$6.74 million.

Insider activity

Insiders have transacted a total of 5 times at Riot Blockchain Inc. over the last 6 months, with insider purchases undertaken 3 times and accounting for 1,463,758 shares. Insider sales totaled 124,240 shares over the same period, with these deals completed in 2 transactions. Looking at these numbers, we realize that net purchases over that period are 1.0 shares. Insiders now hold a total of 425.67k shares after the latest sales, with -141.00% net shares purchased.

Major holders

Insiders own 3.10% of the company shares, while shares held by institutions stand at 6.50% with a share float percentage of 32.88M. Investors are also buoyed by the number of investors in a company, with Riot Blockchain Inc. having a total of 40 institutions that hold shares in the company.