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

Key Points

• NIO shares gapped down from a previous close of $7.45 to open at $7.23 amid concerns over the company's recent earnings report, which showed a loss of $0.32 per share.
• Multiple Wall Street analysts have upgraded NIO's stock ratings, with UBS raising its price target from $6.20 to $8.50, indicating a more optimistic outlook for the company.
• The company has a current market cap of $15.41 billion and is showing significant institutional interest, as evidenced by a 3,966.7% increase in stake by UBS Asset Management in the first quarter.

NIO Inc. (NYSE:NIO - Get Free Report) shares gapped down before the market opened on Thursday . The stock had previously closed at $7.45, but opened at $7.23. NIO shares last traded at $7.45, with a volume of 21,910,119 shares trading hands.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on NIO shares. JPMorgan Chase & Co. raised NIO from a "neutral" rating to an "overweight" rating and upped their target price for the stock from $4.80 to $8.00 in a research report on Tuesday, August 26th. Mizuho upped their target price on NIO from $3.50 to $6.00 and gave the stock a "neutral" rating in a research report on Wednesday, September 3rd. UBS Group raised NIO from a "neutral" rating to a "buy" rating and upped their target price for the stock from $6.20 to $8.50 in a research report on Tuesday, September 16th. Bank of America upped their target price on NIO from $5.00 to $7.10 and gave the stock a "neutral" rating in a research report on Wednesday, September 3rd. Finally, Barclays cut their price target on NIO from $4.00 to $3.00 and set an "underweight" rating for the company in a report on Wednesday, June 4th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, NIO currently has a consensus rating of "Hold" and a consensus target price of $6.16.

NIO Price Performance

The stock has a market capitalization of $15.34 billion, a P/E ratio of -4.59 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. The company has a fifty day simple moving average of $5.45 and a two-hundred day simple moving average of $4.41.

NIO (NYSE:NIO - Get Free Report) last issued its earnings results 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 return on equity of 589.46% and a negative net margin of 34.71%.The company had revenue of $2.65 billion for the quarter, compared to the consensus estimate of $20.07 billion. During the same quarter last year, the business posted ($2.21) EPS. NIO's quarterly revenue was up 9.0% on a year-over-year basis. NIO has set its Q3 2025 guidance at EPS. Sell-side analysts expect that NIO Inc. will post -1.43 EPS for the current fiscal year.

Institutional Trading of NIO

Large investors have recently bought and sold shares of the business. Vident Advisory LLC raised its position in NIO by 60.6% in the 4th quarter. Vident Advisory LLC now owns 53,937 shares of the company's stock valued at $235,000 after buying an additional 20,349 shares during the last quarter. Shufro Rose & Co. LLC acquired a new stake in NIO in the 4th quarter valued at approximately $65,000. Annex Advisory Services LLC acquired a new stake in NIO in the 1st quarter valued at approximately $47,000. SG Americas Securities LLC raised its position in NIO by 83.3% in the 1st quarter. SG Americas Securities LLC now owns 2,109,761 shares of the company's stock valued at $8,038,000 after buying an additional 958,750 shares during the last quarter. Finally, Azzad Asset Management Inc. ADV raised its position in NIO by 44.1% in the 1st quarter. Azzad Asset Management Inc. ADV now owns 39,492 shares of the company's stock valued at $150,000 after buying an additional 12,080 shares during the last quarter. 48.55% of the stock is owned by institutional investors.

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.