Xpeng Inc (NYSE: XPEV) is pushing meaningfully to the upside this morning following reports that He Xiaopeng, its chief executive and co-founder has loaded up on the EV stock.
Xiaopeng has bought roughly 3.1 million shares of the Guangzhou-headquartered electric vehicle company. Following the transaction, the CEO and his affiliates now own nearly 19% of XPEV.
Xpeng stock has been on an absolute tear over the past month. Including the rally on Thursday, the EV stock is up well over 30% from its low in July.
Why is Xiaopeng’s move constructive for Xpeng stock?
He Xiaopeng’s substantial purchase of Xpeng shares is meaningfully positive for those invested in the automaker, as it’s a strong vote of confidence in its future prospects.
Insider buying, especially by a top executive, often reassures investors about business stability and the possibility of long-term growth.
With Xiaopeng and affiliates now holding 19% of XPEV, the management’s strategic priorities are now fully aligned with shareholder interests and commitment to driving sustainable value.
The chief executive’s recent move may also be a signal that he views XPEV stock as “undervalued” at current levels, which could attract more institutional and retail interest in the EV stock.
In short, insider buying typically boosts investor sentiment and can act as a strong enough catalyst for upward momentum in a company’s stock price.
BofA recommends loading up on XPEV shares
Bank of America Securities recommends following CEO He Xiaopeng’s lead and loading up on the XPEV shares, given the company’s accelerating growth trajectory.
The investment firm maintained its “buy” rating on the EV stock but raised its price target today to $26, indicating potential upside of nearly 30% on its previous close.
Much of BofA’s optimism on Xpeng stock hinges on the management’s super upbeat guidance for up to 118,000 deliveries in the current quarter, which translates to a year-on-year increase of over 150%.
The electric vehicle firm expects monthly sales to exceed 40,000 units from September onward – signalling strong demand. On Thursday, the Bank of America analysts also raised their 2027 profit forecast for XPEV by 20% thanks to its robust model pipeline.
All in all, the CEO’s increased stake reinforces confidence in execution and future value creation, making Xpeng shares a compelling bet for growth-focused investors.
Wall Street agrees with BofA on Xpeng shares
Investors should also note that BofA isn’t the only Wall Street firm that’s keeping bullish on XPEV stock for the long term.
According to data from Barchart, the consensus rating on Xpeng shares currently sits at “moderate buy” with price targets going as high as $30, suggesting potential upside of nearly 50% from their previous close.
That said, Xpeng stock does not currently pay a dividend and, therefore, remains unattractive for income-focused investors.
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