NIO (NYSE:NIO) Trading Down 4.4% - Should You Sell?

Key Points

• NIO Inc. saw its stock price decline by 4.4%, closing at $6.05 after hitting a low of $5.97 during mid-day trading.
• Analysts have mixed views on NIO, with Goldman Sachs upgrading the stock to a "neutral" rating while Barclays reduced its price target significantly, indicating uncertainty in the market.
• NIO reported a wider-than-expected loss of ($0.45) earnings per share for the previous quarter, missing estimates and highlighting ongoing financial struggles despite a year-over-year revenue increase of 21.5%.

NIO Inc. (NYSE:NIO - Get Free Report)'s stock price traded down 4.4% during mid-day trading on Thursday . The company traded as low as $5.97 and last traded at $6.05. 34,702,234 shares were traded during mid-day trading, a decline of 38% from the average session volume of 55,583,270 shares. The stock had previously closed at $6.32.

Analysts Set New Price Targets

A number of research analysts recently issued reports on the stock. Mizuho raised their target price on shares of NIO from $3.50 to $6.00 and gave the company a "neutral" rating in a research note on Wednesday. JPMorgan Chase & Co. upgraded shares of NIO from a "neutral" rating to an "overweight" rating and raised their target price for the company from $4.80 to $8.00 in a research note on Tuesday, August 26th. Bank of America raised their target price on shares of NIO from $5.00 to $7.10 and gave the company a "neutral" rating in a research note on Wednesday. The Goldman Sachs Group upgraded shares of NIO from a "sell" rating to a "neutral" rating and raised their target price for the company from $3.70 to $3.80 in a research note on Tuesday, June 17th. Finally, Barclays lowered their target price 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. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $5.83.

NIO Stock Down 3.1%

The company has a debt-to-equity ratio of 1.89, a quick ratio of 0.71 and a current ratio of 0.84. The company has a market capitalization of $12.40 billion, a price-to-earnings ratio of -3.71 and a beta of 1.20. The firm's 50-day simple moving average is $4.83 and its 200-day simple moving average is $4.26.

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 the consensus estimate of ($0.30) by ($0.02). The company had revenue of $2.65 billion during the quarter, compared to analyst estimates of $20.07 billion. NIO had a negative return on equity of 589.46% and a negative net margin of 34.71%.The business's revenue for the quarter was up 9.0% on a year-over-year basis. During the same quarter in the prior year, the business earned ($2.21) earnings per share. NIO has set its Q3 2025 guidance at EPS. Sell-side analysts forecast that NIO Inc. will post -1.43 earnings per share for the current year.

Institutional Trading of NIO

Several hedge funds and other institutional investors have recently bought and sold shares of NIO. Ethic Inc. grew its position in NIO by 147.5% in the 4th quarter. Ethic Inc. now owns 119,432 shares of the company's stock worth $521,000 after purchasing an additional 71,184 shares during the last quarter. J. Goldman & Co LP acquired a new stake in shares of NIO during the 4th quarter valued at about $541,000. Laird Norton Wetherby Wealth Management LLC boosted its position in shares of NIO by 15.1% during the 4th quarter. Laird Norton Wetherby Wealth Management LLC now owns 66,534 shares of the company's stock valued at $290,000 after acquiring an additional 8,746 shares in the last quarter. Laird Norton Wetherby Trust Company LLC acquired a new stake in shares of NIO during the 4th quarter valued at about $93,000. Finally, Vienna Asset Management LLC acquired a new stake in shares of NIO during the 4th quarter valued at about $100,000. 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.