NIO (NYSE:NIO) Shares Gap Up After Analyst Upgrade

Key Points

• NIO Inc. shares gapped up from $7.02 to $7.23 after UBS Group upgraded the stock from neutral to buy, with a new price target of $8.50.
• Multiple analysts have varying ratings for NIO, with an average rating of Hold and an average target price of $6.16, indicating mixed sentiment among investors.
• NIO reported a loss of $0.32 per share in its latest quarterly earnings, falling short of consensus estimates and showcasing a negative net margin of 34.71% despite a 9% year-over-year revenue increase.

NIO Inc. (NYSE:NIO - Get Free Report) gapped up prior to trading on Wednesday after UBS Group upgraded the stock from a neutral rating to a buy rating. The stock had previously closed at $7.02, but opened at $7.23. UBS Group now has a $8.50 price target on the stock, up from their previous price target of $6.20. NIO shares last traded at $7.29, with a volume of 35,600,939 shares.

NIO has been the topic of several other reports. Mizuho increased their target price on shares of NIO from $3.50 to $6.00 and gave the stock a "neutral" rating in a research note on Wednesday, September 3rd. Barclays lowered their price objective on shares of NIO from $4.00 to $3.00 and set an "underweight" rating on the stock in a research report on Wednesday, June 4th. Morgan Stanley restated a "buy" rating on shares of NIO in a research report on Monday, July 14th. Bank of America raised their price objective on shares of NIO from $5.00 to $7.10 and gave the company a "neutral" rating in a research report on Wednesday, September 3rd. Finally, The Goldman Sachs Group upgraded shares of NIO from a "sell" rating to a "neutral" rating and raised their price objective for the company from $3.70 to $3.80 in a research report on Tuesday, June 17th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, NIO currently has an average rating of "Hold" and an average target price of $6.16.

Hedge Funds Weigh In On NIO

A number of large investors have recently added to or reduced their stakes in the business. Tidal Investments LLC boosted its stake in NIO by 0.9% in the 2nd quarter. Tidal Investments LLC now owns 287,140 shares of the company's stock worth $985,000 after purchasing an additional 2,433 shares in the last quarter. Tempus Wealth Planning LLC boosted its stake in NIO by 7.4% in the 1st quarter. Tempus Wealth Planning LLC now owns 42,710 shares of the company's stock worth $163,000 after purchasing an additional 2,943 shares in the last quarter. Redwood Wealth Management Group LLC boosted its stake in NIO by 4.9% in the 2nd quarter. Redwood Wealth Management Group LLC now owns 69,206 shares of the company's stock worth $237,000 after purchasing an additional 3,215 shares in the last quarter. Private Advisor Group LLC boosted its stake in NIO by 4.6% in the 1st quarter. Private Advisor Group LLC now owns 79,500 shares of the company's stock worth $303,000 after purchasing an additional 3,527 shares in the last quarter. Finally, Main Management ETF Advisors LLC boosted its stake in NIO by 1.7% in the 2nd quarter. Main Management ETF Advisors LLC now owns 222,057 shares of the company's stock worth $762,000 after purchasing an additional 3,612 shares in the last quarter. Hedge funds and other institutional investors own 48.55% of the company's stock.

NIO Stock Up 3.6%

The business's 50 day moving average is $5.23 and its 200 day moving average is $4.34. The company has a market capitalization of $15.19 billion, a price-to-earnings ratio of -4.55 and a beta of 1.20. The company has a debt-to-equity ratio of 1.89, a quick ratio of 0.71 and a current ratio of 0.84.

NIO (NYSE:NIO - Get Free Report) last posted its quarterly 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 business had revenue of $2.65 billion for the quarter, compared to analysts' expectations of $20.07 billion. During the same period in the prior year, the business posted ($2.21) earnings per share. The business's quarterly revenue was up 9.0% compared to the same quarter last year. NIO has set its Q3 2025 guidance at EPS. Sell-side analysts anticipate that NIO Inc. will post -1.43 earnings per share for the current year.

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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