NIO (NYSE:NIO) Shares Down 6.5% - Should You Sell?

Key Points

• NIO shares fell about 6.5% on Friday to roughly $5.98, trading only ~10.66 million shares that day—about 75% below its average daily volume.
• Analysts are mixed but leaning positive after several recent upgrades; there are seven Buy, four Hold and two Sell ratings, leaving a consensus rating of "Hold" with an average price target of $6.80.
• NIO remains financially strained—unprofitable with a negative net margin (-17.21%) and negative ROE, a high debt-to-equity ratio (2.08), and sell-side forecasts of about -0.28 EPS for the current year.

NIO Inc. (NYSE:NIO - Get Free Report) dropped 6.5% on Friday . The company traded as low as $5.98 and last traded at $5.9750. Approximately 10,659,337 shares traded hands during trading, a decline of 75% from the average daily volume of 42,643,473 shares. The stock had previously closed at $6.39.

Wall Street Analysts Forecast Growth

NIO has been the subject of a number of recent analyst reports. Nomura upgraded NIO from a "neutral" rating to a "buy" rating and set a $6.60 price objective for the company in a research note on Wednesday, March 11th. Bank of America reiterated a "neutral" rating on shares of NIO in a research report on Tuesday, March 10th. Macquarie Infrastructure upgraded NIO from a "neutral" rating to an "outperform" rating and set a $6.10 target price for the company in a research report on Thursday, January 15th. HSBC upgraded NIO from a "hold" rating to a "buy" rating and lifted their target price for the stock from $4.80 to $6.80 in a research report on Friday, March 13th. Finally, Dbs Bank upgraded NIO from a "hold" rating to a "moderate buy" rating in a research report on Monday, March 16th. Seven investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $6.80.

NIO Trading Down 7.4%

The company has a market cap of $13.59 billion, a price-to-earnings ratio of -6.10 and a beta of 0.99. The firm has a 50-day moving average price of $5.83 and a 200 day moving average price of $5.62. The company has a current ratio of 0.98, a quick ratio of 0.87 and a debt-to-equity ratio of 2.08.

NIO (NYSE:NIO - Get Free Report) last issued its earnings results on Saturday, February 14th. The company reported $0.04 EPS for the quarter. The company had revenue of $4.95 billion during the quarter. NIO had a negative return on equity of 924.56% and a negative net margin of 17.21%. As a group, sell-side analysts forecast that NIO Inc. will post -0.28 EPS for the current year.

Institutional Trading of NIO

Several hedge funds have recently made changes to their positions in NIO. Aspex Management HK Ltd bought a new stake in shares of NIO in the 3rd quarter worth approximately $266,700,000. WT Asset Management Ltd bought a new stake in shares of NIO in the 3rd quarter worth approximately $142,120,000. Ghisallo Capital Management LLC bought a new stake in shares of NIO in the 3rd quarter worth approximately $91,440,000. Voloridge Investment Management LLC bought a new stake in shares of NIO in the 3rd quarter worth approximately $89,952,000. Finally, RWC Asset Advisors US LLC bought a new stake in shares of NIO in the 3rd quarter worth approximately $79,761,000. Institutional investors own 48.55% of the company's stock.

About NIO

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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