NIO (NYSE:NIO) Shares Gap Down Following Weak Earnings

Key Points

• NIO shares opened at $6.38 after closing the previous day at $6.58, with recent trading at $6.15 and a volume of approximately 12.97 million shares.
• Analysts have varied opinions on NIO, with price targets ranging from a low of $3.00 to a high of $8.00; the current consensus price target is $5.21.
• For the latest quarter, NIO reported a loss of ($0.45) per share, missing estimates, but revenue increased by 21.5% year-over-year.

NIO Inc. (NYSE:NIO - Get Free Report) shares gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $6.58, but opened at $6.38. NIO shares last traded at $6.15, with a volume of 12,969,339 shares changing hands.

The company reported ($0.32) EPS for the quarter, missing the consensus estimate of ($0.30) by ($0.02). The business had revenue of $2.65 billion for the quarter, compared to analyst estimates of $20.07 billion. NIO had a negative net margin of 34.71% and a negative return on equity of 589.46%. The firm's revenue for the quarter was up 9.0% on a year-over-year basis. During the same period in the prior year, the company earned ($2.21) earnings per share. NIO has set its Q3 2025 guidance at EPS.

Analysts Set New Price Targets

Several research analysts have weighed in on NIO shares. JPMorgan Chase & Co. upgraded shares of NIO from a "neutral" rating to an "overweight" rating and upped their price objective for the company from $4.80 to $8.00 in a research note on Tuesday, August 26th. Mizuho increased their price target on shares of NIO from $3.50 to $6.00 and gave the stock a "neutral" rating in a research note on Wednesday. Barclays dropped their price target on shares of NIO from $4.00 to $3.00 and set an "underweight" rating on the stock in a research note on Wednesday, June 4th. Bank of America increased their price target on shares of NIO from $5.00 to $7.10 and gave the stock a "neutral" rating in a research note on Wednesday. Finally, Morgan Stanley restated a "buy" rating on shares of NIO in a research note on Monday, July 14th. One 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 given a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $5.83.

Institutional Trading of NIO

A number of hedge funds have recently bought and sold shares of the stock. Tidal Investments LLC boosted its holdings in NIO by 0.9% in the 2nd quarter. Tidal Investments LLC now owns 287,140 shares of the company's stock valued at $985,000 after purchasing an additional 2,433 shares during the period. Tempus Wealth Planning LLC boosted its holdings in NIO by 7.4% in the 1st 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 during the period. Redwood Wealth Management Group LLC boosted its holdings in NIO by 4.9% in the 2nd quarter. Redwood Wealth Management Group LLC now owns 69,206 shares of the company's stock valued at $237,000 after purchasing an additional 3,215 shares during the period. Private Advisor Group LLC boosted its holdings in NIO by 4.6% in the 1st quarter. Private Advisor Group LLC now owns 79,500 shares of the company's stock valued at $303,000 after purchasing an additional 3,527 shares during the period. Finally, Main Management ETF Advisors LLC boosted its holdings 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 purchasing an additional 3,612 shares during the period. 48.55% of the stock is owned by institutional investors.

NIO Trading Down 3.1%

The company has a current ratio of 0.84, a quick ratio of 0.69 and a debt-to-equity ratio of 1.89. The business's fifty day simple moving average is $4.83 and its two-hundred day simple moving average is $4.26. The stock has a market capitalization of $12.40 billion, a P/E ratio of -3.71 and a beta of 1.20.

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.