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

Key Points

• NIO shares dropped 7.1% to about $5.94 on Friday on heavy trading — roughly 60.9 million shares, a 41% jump versus average volume.
• Several analysts recently upgraded NIO, but the consensus rating remains "Hold" with an average price target of $6.80.
• NIO shows : a -17.21% net margin, -924.56% ROE, a debt-to-equity ratio of 2.08, and analysts forecast -$0.28 EPS for the year despite $0.04 reported last quarter.

NIO Inc. (NYSE:NIO - Get Free Report) was down 7.1% on Friday . The company traded as low as $5.81 and last traded at $5.9350. Approximately 60,871,349 shares changed hands during mid-day trading, an increase of 41% from the average daily volume of 43,272,227 shares. The stock had previously closed at $6.39.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on NIO shares. Dbs Bank raised NIO from a "hold" rating to a "moderate buy" rating in a research report on Monday, March 16th. HSBC raised NIO from a "hold" rating to a "buy" rating and lifted their price objective for the company from $4.80 to $6.80 in a report on Friday, March 13th. Bank of America reaffirmed a "neutral" rating on shares of NIO in a report on Tuesday, March 10th. Nomura raised NIO from a "neutral" rating to a "buy" rating and set a $6.60 price objective for the company in a report on Wednesday, March 11th. Finally, Macquarie Infrastructure raised NIO from a "neutral" rating to an "outperform" rating and set a $6.10 price objective for the company in a report on Thursday, January 15th. Seven research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $6.80.

NIO Price Performance

The company has a current ratio of 0.98, a quick ratio of 0.87 and a debt-to-equity ratio of 2.08. The firm has a market cap of $13.64 billion, a price-to-earnings ratio of -6.12 and a beta of 0.99. The company's 50-day moving average is $5.83 and its 200-day moving average is $5.62.

NIO (NYSE:NIO - Get Free Report) last posted its quarterly earnings results on Saturday, February 14th. The company reported $0.04 earnings per share (EPS) for the quarter. The business had revenue of $4.95 billion for the quarter. NIO had a negative net margin of 17.21% and a negative return on equity of 924.56%. Equities research analysts predict that NIO Inc. will post -0.28 earnings per share for the current year.

Institutional Trading of NIO

Several large investors have recently made changes to their positions in the company. Gladstone Institutional Advisory LLC increased its holdings in NIO by 12.8% during the 3rd quarter. Gladstone Institutional Advisory LLC now owns 13,231 shares of the company's stock worth $101,000 after acquiring an additional 1,500 shares during the period. MGO One Seven LLC increased its holdings in NIO by 10.6% during the 3rd quarter. MGO One Seven LLC now owns 16,208 shares of the company's stock worth $124,000 after acquiring an additional 1,560 shares during the period. Insigneo Advisory Services LLC increased its holdings in NIO by 4.4% during the 3rd quarter. Insigneo Advisory Services LLC now owns 43,067 shares of the company's stock worth $328,000 after acquiring an additional 1,806 shares during the period. V Square Quantitative Management LLC increased its holdings in NIO by 17.4% during the 1st quarter. V Square Quantitative Management LLC now owns 13,707 shares of the company's stock worth $83,000 after acquiring an additional 2,027 shares during the period. Finally, Tidal Investments LLC increased its holdings in NIO by 0.9% during the 2nd 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. Institutional investors and hedge funds own 48.55% of the company's stock.

About NIO

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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