Is EHang Holdings Ltd ADR (NASDAQ: EH) A Good Investment Now?

EHang Holdings Ltd ADR (NASDAQ:EH) shares, rose in value, with the stock price up by 6.12% to the previous day’s close as strong demand from buyers drove the stock to $18.89.

Actively observing the price movement in the last trading, the stock closed the session at $17.80. The value of beta (5-year monthly) was 0.94. Referring to stock’s 52-week performance, its high was $25.78, and the low was $9.18. On the whole, EH has fluctuated by 74.42% over the past month.

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With the market capitalization of EHang Holdings Ltd ADR currently standing at about $772.22 million, investors are eagerly awaiting this quarter’s results, scheduled for May 29, 2024 – Jun 03, 2024. As a result, investors might want to see an improvement in the stock’s price before the company announces its earnings report. Analysts are projecting the company’s earnings per share (EPS) to be -$0.09, which is expected to increase to -$0.06 for fiscal year -$0.11 and then to about $0.42 by fiscal year 2025. Data indicates that the EPS growth is expected to be 65.60% in 2025, while the next year’s EPS growth is forecast to be 481.80%.

Analysts have estimated the company’s revenue for the quarter at $6.55 million, with a low estimate of $6.55 million and a high estimate of $6.55 million. According to the average forecast, sales growth in current quarter could jump up 102.60%, compared to the corresponding quarter of last year. Wall Street analysts also predicted that in 2025, the company’s y-o-y revenues would reach $57.2 million, representing an increase of 245.80% from the revenues reported in the last year’s results.

Revisions could be a useful indicator to get insight on short-term price movement; so for the company, there were no upward and no downward review(s) in last seven days. We see that EH’s technical picture suggests that short-term indicators denote the stock is a 100% Buy on average. However, medium term indicators have put the stock in the category of 50% Sell while long term indicators on average have been pointing out that it is a 50% Buy.

The stock’s technical analysis shows that the PEG ratio is about 0, with the price of EH currently trading nearly 19.46% and 47.69% away from the simple moving averages for 20 and 50 days respectively. The Relative Strength Index (RSI, 14) currently indicates a reading of 62.37, while the 7-day volatility ratio is showing 7.85% which for the 30-day chart, stands at 10.97%. Furthermore, EHang Holdings Ltd ADR (EH)’s beta value is 1.07, and its average true range (ATR) is 1.67.

A comparison of EHang Holdings Ltd ADR (EH) with its peers suggests the former has fared considerably weaker in the market. EH showed an intraday change of 6.12% in last session, and over the past year, it grew by 102.03%%.

Data on historical trading for EHang Holdings Ltd ADR (NASDAQ:EH) indicates that the trading volumes over the past 10 days have averaged 2.14 million and over the past 3 months, they’ve averaged 1.16 million. According to company’s latest data on outstanding shares, there are 40.88 million shares outstanding.

Nearly 1.54% of EHang Holdings Ltd ADR’s shares belong to company insiders and institutional investors own 26.89% of the company’s shares. The data on short interest also indicates that stock shorts accounted for 6.31 million shares as on Mar 15, 2024, resulting in a short ratio of 6.7. According to the data, the short interest in EHang Holdings Ltd ADR (EH) stood at 10.44% of shares outstanding as of Mar 15, 2024; the number of short shares registered in Feb 15, 2024 reached 6.84 million. The stock has risen by 12.44% since the beginning of the year, thereby showing the potential of a further growth. This could raise investors’ confidence to be optimistic about the EH stock heading into the next quarter.