NIO (NYSE:NIO) Shares Gap Down - Here's Why

Key Points

• NIO Inc. shares opened at $5.74, down from a previous close of $6.28, with the stock last trading at $5.69.
• Analyst ratings have varied, with Bank of America raising its target price to $7.10 while Barclays reduced its target to $3.00, reflecting mixed sentiments about the company's performance.
• NIO reported earnings of ($0.32) per share, missing expectations, alongside a 9.0% year-over-year revenue increase, totaling $2.65 billion.

NIO Inc. (NYSE:NIO - Get Free Report) shares gapped down before the market opened on Wednesday . The stock had previously closed at $6.28, but opened at $5.74. NIO shares last traded at $5.69, with a volume of 125,897,827 shares.

Analyst Ratings Changes

A number of research firms have weighed in on NIO. Bank of America lifted their target price on NIO from $5.00 to $7.10 and gave the company a "neutral" rating in a report on Wednesday, September 3rd. Mizuho raised their price objective on shares of NIO from $3.50 to $6.00 and gave the company a "neutral" rating in a research report on Wednesday, September 3rd. Morgan Stanley reaffirmed a "buy" rating on shares of NIO in a report on Monday, July 14th. JPMorgan Chase & Co. upgraded shares of NIO from a "neutral" rating to an "overweight" rating and increased their target price for the stock from $4.80 to $8.00 in a research note on Tuesday, August 26th. Finally, Barclays reduced their price target on shares of NIO from $4.00 to $3.00 and set an "underweight" rating for the company in a research report on Wednesday, June 4th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $5.83.

NIO Stock Down 9.6%

The stock's fifty day moving average price is $4.94 and its 200 day moving average price is $4.28. The stock has a market cap of $11.84 billion, a P/E ratio of -3.55 and a beta of 1.20. The company has a current ratio of 0.84, a quick ratio of 0.71 and a debt-to-equity ratio of 1.89.

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

Institutional Investors Weigh In On NIO

A number of institutional investors have recently made changes to their positions in NIO. Xponance Inc. purchased a new stake in NIO during the 1st quarter valued at $39,000. Blueshift Asset Management LLC purchased a new stake in NIO during the 1st quarter valued at $43,000. Hedeker Wealth LLC purchased a new stake in NIO during the 2nd quarter valued at $43,000. Annex Advisory Services LLC purchased a new stake in NIO during the 1st quarter valued at $47,000. Finally, May Hill Capital LLC purchased a new stake in NIO during the 1st quarter valued at $48,000. Hedge funds and other institutional investors own 48.55% of the company's stock.

About NIO

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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