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

Key Points

• NIO shares gapped down from a prior close of $4.82 to open at $4.63, later trading near $4.57 on volume of roughly 11.3 million shares.
• Despite mixed analyst opinions, NIO has a consensus “Moderate Buy” rating and an average price target of $6.70, implying potential upside from current levels.
• Institutional ownership stands at 48.55%, with several major funds—including Bank of America and Renaissance Technologies—recently increasing their stakes.

NIO Inc. (NYSE:NIO - Get Free Report) shares gapped down before the market opened on Tuesday . The stock had previously closed at $4.82, but opened at $4.63. NIO shares last traded at $4.5650, with a volume of 11,257,912 shares changing hands.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on NIO. Bank of America reaffirmed a "neutral" rating and issued a $6.80 target price on shares of NIO in a research note on Thursday, May 21st. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of NIO in a research note on Wednesday, July 29th. Sanford C. Bernstein reiterated a "market perform" rating and set a $6.00 price objective on shares of NIO in a research note on Friday, May 22nd. The Goldman Sachs Group upgraded shares of NIO from a "neutral" rating to a "buy" rating and set a $7.00 price target on the stock in a research note on Monday, July 13th. Finally, Zacks Research raised shares of NIO from a "hold" rating to a "strong-buy" rating in a report on Monday, July 27th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $6.70.

NIO Stock Performance

The company has a market cap of $11.46 billion, a PE ratio of -8.35 and a beta of 0.91. The company has a debt-to-equity ratio of 1.94, a current ratio of 1.01 and a quick ratio of 0.90. The business has a fifty day simple moving average of $4.97 and a two-hundred day simple moving average of $5.36.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Bank of America Corp DE boosted its stake in NIO by 99.0% during the first quarter. Bank of America Corp DE now owns 14,228,916 shares of the company's stock worth $85,800,000 after buying an additional 7,079,903 shares during the last quarter. Renaissance Technologies LLC raised its holdings in NIO by 70.2% in the 1st quarter. Renaissance Technologies LLC now owns 14,452,131 shares of the company's stock valued at $87,146,000 after buying an additional 5,962,731 shares during the period. Assenagon Asset Management S.A. purchased a new position in NIO during the second quarter worth about $19,008,000. ABC Arbitrage SA purchased a new position in shares of NIO during the 1st quarter worth approximately $4,043,000. Finally, Hsbc Holdings PLC grew its stake in shares of NIO by 48.8% in the fourth quarter. Hsbc Holdings PLC now owns 680,382 shares of the company's stock valued at $3,445,000 after buying an additional 223,178 shares in the last quarter. 48.55% of the stock is owned by institutional investors and hedge funds.

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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