XPeng Inc. is a Chinese automaker company that manufactures smart electric vehicles. It was founded in the year 2014 by Henry Xia and He Tao who is also a former executive at GAC Group. Xpeng Inc. has its headquarters in Guangzhou, Guangdong, China. The company has more than 13.97K employees. It is listed in the NYSE with a ticker name XPEV.
Xpeng Inc. does not pay any dividend to its shareholders which means that it reinvests all its profits in the business. Currently, PEV share has 669.933M shares floating in the market which is 45.15M higher than the year 2021. XPEV stock price can be considered more volatile as compared to the whole market as it has a beta of 2.51.
The XPEV share has a market cap of $15.42B, following a negative EPS of -1.65 USD. The following data indicates that the company is losing money on each share. The current debt/equity ratio of XPeng Inc. is 40.87% which is considered neutral while the stock has a negative price-to-earnings ratio of -11.49. This shows pessimism among the traders for the stock.
XPeng Inc. Stock Performance Analysis
XPeng Inc. has witnessed a significant decline in profit margin. In the year ending 2022, the company reported a loss of -$1.36B as net income. It made a revenue of $3.99B followed by a debt of $2.59B. Also in Q2 2023, XPeng Inc. witnessed a decline of 35.9% in revenue resulting in $721.17M. Net Income of the company has again declined by 2.2% in Q2 2023 compared to year-on-year.
Performance Analysis of XPEV Stock
Despite the poor financials, the experts are bullish on XPEV. This could be because the company has met the revenue expectations of the experts multiple times and has disappointed only in the year 2022. Analysts are aiming for a target price of $25.37 which is 39.72% above the CMP of XPEV share price.
XPEV Stock Technical Analysis
XPEV stock price is trading inside a symmetric triangle pattern. The stock price is currently making bullish candlesticks representing the presence of buyers in the market. XPEV share is also making higher swing points leading to an advance in price.
The EMAs are following a golden cross as the XPEV share price has been advancing to higher levels. Moreover, the XPEV share price is trading above the 50-day and the 200-day EMA.
Following the advance in the share price of XPeng Inc., RSI is currently following a bullish momentum reversing from the overbought zone. The current value of the RSI is 54.90 which is higher than 50. This represents strength in the momentum of the share price.
Conclusion
As XPeng Inc. is a new company and works in the automotive sector, it takes time for a startup to settle down. Hence, following the poor financials of the company making a judgment on it won’t be right. Considering the technicals we can see that the XPEV stock price is trading inside a symmetric triangle pattern. The RSI and the EMAs are also giving a buy signal for the stock. The experts are also bullish on the stock.
Therefore, if the share price of the XPEV breaks above the symmetric triangle, it might lead to higher prices hitting the resistance levels.
Technical Levels
- Support levels- $6.30 and $12.80
- Resistance levels- $20.00 and $23.50
Disclaimer
The information provided in this article, including the views and opinions expressed by the author or any individuals mentioned, is intended for informational purposes only. It is important to note that the article does not provide financial or investment advice. Investing or trading in cryptocurrency assets carries inherent risks and can result in financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/10/07/brokerage-houses-bullish-on-xpev-stock-what-to-expect/