NIO (NYSE:NIO) Shares Down 2.4% - What's Next?

Key Points

• NIO shares fell 2.4% in midday trading, hitting an intraday low of $4.66 before last trading around $4.68, on volume below its recent average.
• Wall Street sentiment is mixed but leaning cautious: analysts currently have a consensus “Hold” rating, with an average price target of $6.70, though Goldman Sachs recently upgraded the stock to “buy.”
• Institutional ownership remains significant, with hedge funds and other institutions holding about 48.55% of NIO shares, and several funds increasing their positions in recent quarters.

NIO Inc. (NYSE:NIO - Get Free Report)'s stock price dropped 2.4% during mid-day trading on Wednesday . The stock traded as low as $4.66 and last traded at $4.6750. 30,886,448 shares changed hands during mid-day trading, a decline of 21% from the average session volume of 39,152,121 shares. The stock had previously closed at $4.79.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on NIO. Bank of America restated a "neutral" rating and set a $6.80 price objective on shares of NIO in a research note on Thursday, May 21st. The Goldman Sachs Group raised shares of NIO from a "neutral" rating to a "buy" rating and set a $7.00 target price on the stock in a research note on Monday, July 13th. Sanford C. Bernstein restated a "market perform" rating and set a $6.00 price target on shares of NIO in a research report on Friday, May 22nd. Finally, Weiss Ratings reaffirmed a "sell (e+)" rating on shares of NIO in a research note on Friday, May 1st. Seven investment analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $6.70.

NIO Stock Performance

The stock has a market cap of $11.61 billion, a price-to-earnings ratio of -8.50 and a beta of 0.90. The company's 50-day simple moving average is $5.26 and its 200-day simple moving average is $5.37. The company has a quick ratio of 0.90, a current ratio of 1.01 and a debt-to-equity ratio of 1.94.

Institutional Investors Weigh In On NIO

Several hedge funds have recently modified their holdings of the stock. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in NIO by 3,966.7% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 5,316,291 shares of the company's stock worth $20,255,000 after purchasing an additional 5,185,565 shares in the last quarter. Franklin Resources Inc. increased its position in shares of NIO by 50.9% in the second quarter. Franklin Resources Inc. now owns 17,707 shares of the company's stock worth $61,000 after acquiring an additional 5,974 shares in the last quarter. Invesco Ltd. raised its holdings in shares of NIO by 22.7% during the second quarter. Invesco Ltd. now owns 2,738,308 shares of the company's stock valued at $9,392,000 after acquiring an additional 506,618 shares during the period. First Trust Advisors LP lifted its position in shares of NIO by 67.4% in the 2nd quarter. First Trust Advisors LP now owns 73,280 shares of the company's stock valued at $251,000 after acquiring an additional 29,501 shares in the last quarter. Finally, AXA S.A. acquired a new position in NIO in the 2nd quarter worth approximately $64,000. 48.55% of the stock is owned by hedge funds and other institutional investors.

NIO Company Profile

NIO Inc is a pioneer in the premium electric vehicle (EV) segment, dedicated to the design, development and manufacture of smart, high-performance EVs. Established in November 2014 and headquartered in Shanghai, China, the company focuses on integrating cutting-edge electric propulsion, advanced connectivity and autonomous driving technologies into its automotive platforms. NIO's vision centers on creating a holistic user experience that extends beyond the vehicle itself, encompassing energy services and digital solutions.

The company's product lineup includes flagship SUVs and sedans such as the ES8, ES6, EC6, ET7 and ET5, each engineered to deliver strong performance, long range and a suite of intelligent driver-assistance features.

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