NIO (NYSE:NIO) Shares Down 5.9% - Time to Sell?

Key Points

• NIO's stock price fell by 5.9% to $7.03 during mid-day trading, with over 92 million shares exchanged, indicating increased trading activity compared to its average volume.
• Analysts are divided on NIO's stock, with predictions ranging from a buy rating and a target price increase to $8.50 by UBS, to a downgrade from Barclays with a target of $3.00.
• The company's latest earnings report showed a loss of ($0.32) EPS, missing estimates, despite a 9% revenue increase year-over-year, reflecting ongoing challenges for NIO.

NIO Inc. (NYSE:NIO - Get Free Report)'s stock price was down 5.9% during mid-day trading on Friday . The stock traded as low as $6.96 and last traded at $7.03. Approximately 92,001,652 shares traded hands during mid-day trading, an increase of 55% from the average daily volume of 59,419,164 shares. The stock had previously closed at $7.47.

Wall Street Analyst Weigh In

NIO has been the subject of several recent analyst reports. The Goldman Sachs Group upgraded NIO from a "sell" rating to a "neutral" rating and increased their target price for the company from $3.70 to $3.80 in a report on Tuesday, June 17th. Barclays reduced their price objective on NIO from $4.00 to $3.00 and set an "underweight" rating for the company in a research note on Wednesday, June 4th. UBS Group raised NIO from a "neutral" rating to a "buy" rating and lifted their target price for the company from $6.20 to $8.50 in a research note on Tuesday, September 16th. JPMorgan Chase & Co. upgraded shares of NIO from a "neutral" rating to an "overweight" rating and raised their price target for the stock from $4.80 to $8.00 in a report on Tuesday, August 26th. Finally, Morgan Stanley reaffirmed a "buy" rating on shares of NIO in a research report on Monday, July 14th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, NIO currently has a consensus rating of "Hold" and a consensus price target of $6.35.

NIO Stock Performance

The firm has a 50 day moving average price of $5.68 and a two-hundred day moving average price of $4.48. The company has a debt-to-equity ratio of 1.89, a quick ratio of 0.71 and a current ratio of 0.84. The company has a market capitalization of $14.67 billion, a P/E ratio of -4.39 and a beta of 1.20.

NIO (NYSE:NIO - Get Free Report) last issued its quarterly earnings data on Tuesday, September 2nd. The company reported ($0.32) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.30) by ($0.02). The business had revenue of $2.65 billion during the quarter, compared to the consensus estimate of $20.07 billion. NIO had a negative net margin of 34.71% and a negative return on equity of 589.46%. The company's revenue for the quarter was up 9.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($2.21) EPS. NIO has set its Q3 2025 guidance at EPS. On average, research analysts expect that NIO Inc. will post -1.43 earnings per share for the current fiscal year.

Hedge Funds Weigh In On NIO

Hedge funds and other institutional investors have recently made changes to their positions in the company. Tidal Investments LLC boosted its stake in NIO by 0.9% in the 2nd quarter. Tidal Investments LLC now owns 287,140 shares of the company's stock worth $985,000 after purchasing an additional 2,433 shares during the period. Tempus Wealth Planning LLC lifted its holdings in shares of NIO by 7.4% in the first quarter. Tempus Wealth Planning LLC now owns 42,710 shares of the company's stock valued at $163,000 after purchasing an additional 2,943 shares in the last quarter. Redwood Wealth Management Group LLC boosted its position in shares of NIO by 4.9% during the second quarter. Redwood Wealth Management Group LLC now owns 69,206 shares of the company's stock worth $237,000 after buying an additional 3,215 shares during the period. Private Advisor Group LLC grew its holdings in shares of NIO by 4.6% during the first quarter. Private Advisor Group LLC now owns 79,500 shares of the company's stock worth $303,000 after buying an additional 3,527 shares in the last quarter. Finally, Main Management ETF Advisors LLC raised its position in NIO by 1.7% in the 2nd quarter. Main Management ETF Advisors LLC now owns 222,057 shares of the company's stock valued at $762,000 after buying an additional 3,612 shares during the last quarter. 48.55% of the stock is owned by institutional investors.

NIO Company Profile

NIO Inc designs, manufactures, and sells electric vehicles in the People's Republic of China. The company is also involved in the manufacture of e-powertrain, battery packs, and components; and racing management, technology development, and sales and after-sales management activities. In addition, it offers power solutions for battery charging needs; and other value-added services.

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