NIO (NYSE:NIO) Stock Price Down 7.1% - Should You Sell?

Key Points

• NIO Inc. shares fell by 7.1%, closing at $6.12, with trading volume down 28% from average levels.
• Analyst ratings for NIO show a mix of optimism and caution, with one analyst giving a Strong Buy rating and an average target price of $5.83.
• The company reported a loss of $0.45 earnings per share in its latest quarter, missing consensus estimates, although revenue was up 21.5% year-over-year.

NIO Inc. (NYSE:NIO - Get Free Report) dropped 7.1% on Wednesday . The company traded as low as $6.08 and last traded at $6.12. Approximately 40,054,030 shares changed hands during trading, a decline of 28% from the average daily volume of 55,383,773 shares. The stock had previously closed at $6.58.

Analysts Set New Price Targets

NIO has been the subject of a number of recent analyst reports. Morgan Stanley restated a "buy" rating on shares of NIO in a research note on Monday, July 14th. Bank of America upped their price objective on NIO from $5.00 to $7.10 and gave the company a "neutral" rating in a research note on Wednesday. Barclays reduced their target price on NIO from $4.00 to $3.00 and set an "underweight" rating on the stock in a report on Wednesday, June 4th. The Goldman Sachs Group raised NIO from a "sell" rating to a "neutral" rating and increased their target price for the stock from $3.70 to $3.80 in a report on Tuesday, June 17th. Finally, JPMorgan Chase & Co. raised NIO from a "neutral" rating to an "overweight" rating and increased their target price for the stock from $4.80 to $8.00 in a report on Tuesday, August 26th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $5.83.

NIO Trading Down 4.6%

The firm has a market cap of $13.10 billion, a P/E ratio of -3.87 and a beta of 1.20. 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 has a fifty day moving average of $4.67 and a 200-day moving average of $4.22.

NIO (NYSE:NIO - Get Free Report) last announced its quarterly 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). The company had revenue of $1.66 billion during the quarter, compared to the consensus estimate of $12.46 billion. NIO had a negative return on equity of 286.45% and a negative net margin of 35.51%.The company's revenue for the quarter was up 21.5% on a year-over-year basis. During the same period last year, the business posted ($2.39) EPS. Equities research analysts forecast that NIO Inc. will post -1.43 earnings per share for the current year.

Institutional Trading of NIO

Several hedge funds have recently added to or reduced their stakes in NIO. Cantor Fitzgerald L. P. raised its stake in NIO by 281.0% during the 4th quarter. Cantor Fitzgerald L. P. now owns 49,863 shares of the company's stock valued at $217,000 after acquiring an additional 36,774 shares in the last quarter. Ethic Inc. raised its stake in NIO by 147.5% during the 4th quarter. Ethic Inc. now owns 119,432 shares of the company's stock valued at $521,000 after acquiring an additional 71,184 shares in the last quarter. J. Goldman & Co LP bought a new stake in NIO during the 4th quarter valued at $541,000. Laird Norton Wetherby Wealth Management LLC raised its stake in 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. Finally, Laird Norton Wetherby Trust Company LLC bought a new stake in NIO during the 4th quarter valued at $93,000. Institutional investors own 48.55% of the company's stock.

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.

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