NIO (NYSE:NIO) Stock Price Down 3.2% - Time to Sell?

Key Points

• NIO shares fell 3.2% on Tuesday to about $6.45 with roughly 31.7 million shares traded, below the average session volume of ~44.6 million.
• Analysts are mixed: several firms (Nomura, Macquarie, HSBC) recently upgraded NIO, but overall the consensus is an average rating of "Hold" with an average target price of $6.80.
• Company fundamentals show pressure—NIO has a debt-to-equity ratio of 2.08, negative profitability (P/E -6.64, net margin -17.21%, negative ROE), reported $0.04 EPS for the quarter and sell-side forecasts of about -0.28 EPS for the current fiscal year.

Shares of NIO Inc. (NYSE:NIO - Get Free Report) fell 3.2% on Tuesday . The company traded as low as $6.43 and last traded at $6.4450. 31,712,997 shares changed hands during trading, a decline of 29% from the average session volume of 44,562,262 shares. The stock had previously closed at $6.66.

Wall Street Analyst Weigh In

A number of research firms have weighed in on NIO. Nomura upgraded NIO from a "neutral" rating to a "buy" rating and set a $6.60 target price on the stock in a report on Wednesday, March 11th. Macquarie Infrastructure upgraded NIO from a "neutral" rating to an "outperform" rating and set a $6.10 target price on the stock in a report on Thursday, January 15th. HSBC upgraded NIO from a "hold" rating to a "buy" rating and upped their target price for the stock from $4.80 to $6.80 in a report on Friday, March 13th. Bank of America reiterated a "neutral" rating on shares of NIO in a report on Tuesday, March 10th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of NIO in a report on Monday, December 29th. Seven research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Hold" and an average target price of $6.80.

NIO Stock Performance

The company has a debt-to-equity ratio of 2.08, a quick ratio of 0.87 and a current ratio of 0.98. The business has a 50-day moving average price of $5.61 and a 200 day moving average price of $5.65. The stock has a market capitalization of $14.81 billion, a P/E ratio of -6.64 and a beta of 0.99.

NIO (NYSE:NIO - Get Free Report) last issued its quarterly earnings results on Saturday, February 14th. The company reported $0.04 EPS for the quarter. NIO had a negative return on equity of 924.56% and a negative net margin of 17.21%.The firm had revenue of $4.95 billion for the quarter. As a group, sell-side analysts forecast that NIO Inc. will post -0.28 EPS for the current fiscal year.

Institutional Trading of NIO

A number of hedge funds have recently made changes to their positions in NIO. Atlantic Union Bankshares Corp boosted its position in shares of NIO by 98.3% in the 4th quarter. Atlantic Union Bankshares Corp now owns 5,950 shares of the company's stock worth $30,000 after purchasing an additional 2,950 shares in the last quarter. Farther Finance Advisors LLC boosted its position in shares of NIO by 148.3% in the 3rd quarter. Farther Finance Advisors LLC now owns 4,817 shares of the company's stock worth $37,000 after purchasing an additional 2,877 shares in the last quarter. Arax Advisory Partners lifted its position in NIO by 81.6% in the 4th quarter. Arax Advisory Partners now owns 7,758 shares of the company's stock valued at $40,000 after acquiring an additional 3,487 shares in the last quarter. Eurizon Capital SGR S.p.A. bought a new position in NIO in the 4th quarter valued at approximately $41,000. Finally, MV Capital Management Inc. bought a new position in NIO in the 4th quarter valued at approximately $42,000. 48.55% of the stock is owned by institutional investors.

NIO Company Profile

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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