NIO (NYSE:NIO) Trading Down 1.1% - Should You Sell?

Key Points

• NIO Inc. (NYSE:NIO) shares fell by 1.1% to $5.02, with trading volume down 59% compared to its average session volume.
• Analysts provide mixed ratings on NIO, with one "Strong Buy," two "Buy," and nine "Hold" ratings; the consensus target price is $4.76.
• The company reported a loss of ($0.45) earnings per share, missing estimates, while revenue grew 21.5% year-over-year to $1.66 billion.

Shares of NIO Inc. (NYSE:NIO - Get Free Report) were down 1.1% during trading on Wednesday . The company traded as low as $4.97 and last traded at $5.02. Approximately 20,965,116 shares were traded during mid-day trading, a decline of 59% from the average daily volume of 51,652,285 shares. The stock had previously closed at $5.07.

Wall Street Analyst Weigh In

A number of analysts recently commented on NIO shares. Barclays lowered their target price on shares of NIO from $4.00 to $3.00 and set an "underweight" rating for the company in a research note on Wednesday, June 4th. JPMorgan Chase & Co. lifted their target price on shares of NIO from $4.10 to $4.80 and gave the stock a "neutral" rating in a research note on Thursday, August 14th. Morgan Stanley reiterated a "buy" rating on shares of NIO in a research note on Monday, July 14th. The Goldman Sachs Group upgraded shares of NIO from a "sell" rating to a "neutral" rating and lifted their target price for the stock from $3.70 to $3.80 in a research note on Tuesday, June 17th. Finally, Citigroup restated a "buy" rating on shares of NIO in a research note on Monday, April 28th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $4.76.

NIO Stock Performance

The company has a debt-to-equity ratio of 1.89, a quick ratio of 0.69 and a current ratio of 0.84. The firm's 50 day simple moving average is $4.26 and its 200 day simple moving average is $4.12. The firm has a market capitalization of $13.20 billion, a price-to-earnings ratio of -3.90 and a beta of 1.42.

NIO (NYSE:NIO - Get Free Report) last posted its earnings results on Tuesday, June 3rd. The company reported ($0.45) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.22) by ($0.23). NIO had a negative net margin of 35.51% and a negative return on equity of 286.45%. The firm had revenue of $1.66 billion during the quarter, compared to analyst estimates of $12.46 billion. During the same quarter in the prior year, the firm earned ($2.39) earnings per share. The business's revenue for the quarter was up 21.5% on a year-over-year basis. NIO has set its Q2 2025 guidance at EPS. Sell-side analysts forecast that NIO Inc. will post -1.43 earnings per share for the current fiscal year.

Hedge Funds Weigh In On NIO

A number of large investors have recently added to or reduced their stakes in the stock. Tidal Investments LLC raised its position in NIO by 0.9% during the second quarter. Tidal Investments LLC now owns 287,140 shares of the company's stock worth $985,000 after acquiring an additional 2,433 shares during the period. BI Asset Management Fondsmaeglerselskab A S raised its position in NIO by 25.3% during the fourth quarter. BI Asset Management Fondsmaeglerselskab A S now owns 13,440 shares of the company's stock worth $59,000 after acquiring an additional 2,712 shares during the period. Tempus Wealth Planning LLC raised its position in NIO by 7.4% during the first quarter. Tempus Wealth Planning LLC now owns 42,710 shares of the company's stock worth $163,000 after acquiring an additional 2,943 shares during the period. TD Waterhouse Canada Inc. raised its position in NIO by 17.0% during the fourth quarter. TD Waterhouse Canada Inc. now owns 21,653 shares of the company's stock worth $94,000 after acquiring an additional 3,152 shares during the period. Finally, Redwood Wealth Management Group LLC raised its position in NIO by 4.9% during the second quarter. Redwood Wealth Management Group LLC now owns 69,206 shares of the company's stock worth $237,000 after acquiring an additional 3,215 shares during the period. 48.55% of the stock is currently owned by institutional investors and hedge funds.

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.