Xpeng Inc. (NYSE: XPEV), is gaining a lot of ground today after reports surfaced that He Xiaopeng has piled up EV stocks.
Xiaopeng has bought roughly 3.1 million shares of the Guangzhou-headquartered electric vehicle company. After the transaction, XPEV’s CEO and affiliates own almost 19%.
Xpeng’s stock price has soared in the last month. EV’s stock has risen by over 30% since its July low, including the recent rally.
What is the positive impact of Xiaopeng’s action on Xpeng?
He Xiaopeng’s significant purchase of Xpeng’s shares is a positive development for investors in the company, since it shows a vote of confidence towards its future.
Investors are often assured of the stability and potential for long-term growth by insider purchases, particularly those made by top executives.
Xiaopeng, and its affiliates, now hold 19% of XPEV. The management is now aligned to shareholder interest and committed to driving value.
It is possible that the chief executive may have been signaling his view of XPEV’s stock at its current level as being “undervalued”, which would attract retail and institutional interest.
Insider purchases can be a catalyst to a stock’s price increase.
BofA advises XPEV shareholders to buy more shares
Bank of America Securities suggests following the CEO He Xiaopeng and buying XPEV stock, given its accelerating growth trajectory.
Investment firm maintains its buy rating for the stock of EV but raises its target price to $26 today, indicating a potential gain of almost 30% over its last close.
BofA is optimistic about Xpeng stocks due to the super-optimistic guidance of the management for up to 128 000 deliveries during the current quarter. This translates into a 150% increase year-on-year.
Electric vehicle company expects to sell more than 40,000 vehicles per month from September, indicating a strong market. Bank of America analysts raised their profit projections for 2027 by 20% on Thursday due to XPEV’s robust model pipeline.
Overall, the increased stake of the CEO reinforces investor confidence and future value creation. This makes Xpeng shares a great investment for investors who are looking to grow their portfolios.
Wall Street and BofA agree on Xpeng Shares
BofA’s not the only Wall Street company that is bullish about XPEV’s stock over the long-term.
Barchart data shows that the current consensus rating for Xpeng is “moderate-buy” and price targets can reach as high as $30.00, representing a potential gain of up to 50% over their last close.
Xpeng does not pay a current dividend, and is therefore unattractive to income-focused investors.
Should you also buy XPEV shares? This post may change as new information unfolds
