NIO (NYSE:NIO) Stock Price Down 7.2% - Here's Why

Key Points

• Shares of NIO Inc. fell by 7.2% during mid-day trading, reaching a price as low as $4.48, with approximately 38.8 million shares traded, significantly lower than the average daily volume.
• Analyst ratings for NIO show mixed sentiments, with Goldman Sachs upgrading it to "neutral" and others like Barclays downgrading their price target to $3.00, while the average target price is $4.74.
• NIO reported a loss per share of ($0.45) for the last quarter, falling short of analysts' expectations, alongside a revenue of $1.66 billion, which was significantly below the forecast of $12.46 billion.

Shares of NIO Inc. (NYSE:NIO - Get Free Report) dropped 7.2% during mid-day trading on Tuesday . The company traded as low as $4.48 and last traded at $4.56. Approximately 38,756,879 shares traded hands during trading, a decline of 24% from the average daily volume of 51,239,426 shares. The stock had previously closed at $4.91.

Analyst Upgrades and Downgrades

NIO has been the topic of a number of recent analyst reports. The Goldman Sachs Group upgraded NIO from a "sell" rating to a "neutral" rating and increased their price target for the stock from $3.70 to $3.80 in a research report on Tuesday, June 17th. Mizuho decreased their target price on NIO from $4.00 to $3.50 and set a "neutral" rating on the stock in a research report on Tuesday, June 3rd. Morgan Stanley restated a "buy" rating on shares of NIO in a research report on Monday, July 14th. Citigroup restated a "buy" rating on shares of NIO in a research report on Monday, April 28th. Finally, Barclays decreased their target price on NIO from $4.00 to $3.00 and set an "underweight" rating on the stock in a research report on Wednesday, June 4th. One equities research analyst has rated the stock with a sell rating, nine have given a hold rating, two have issued a buy rating and one has given a strong buy rating to the company's stock. According to data from MarketBeat, NIO has an average rating of "Hold" and an average target price of $4.74.

NIO Stock Performance

The stock has a market capitalization of $9.40 billion, a PE ratio of -2.77 and a beta of 1.42. The stock has a fifty day moving average of $4.01 and a 200-day moving average of $4.07. The company has a quick ratio of 0.69, a current ratio of 0.84 and a debt-to-equity ratio of 1.89.

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

Institutional Trading of NIO

A number of hedge funds and other institutional investors have recently made changes to their positions in NIO. Tableaux LLC acquired a new position in NIO in the 2nd quarter valued at about $82,000. Franklin Resources Inc. boosted its holdings in NIO by 50.9% in the 2nd quarter. Franklin Resources Inc. now owns 17,707 shares of the company's stock valued at $61,000 after purchasing an additional 5,974 shares in the last quarter. Handelsbanken Fonder AB boosted its holdings in NIO by 5.0% in the 2nd quarter. Handelsbanken Fonder AB now owns 762,362 shares of the company's stock valued at $2,615,000 after purchasing an additional 36,348 shares in the last quarter. Main Management ETF Advisors LLC boosted its stake in shares of NIO by 1.7% during the 2nd quarter. Main Management ETF Advisors LLC now owns 222,057 shares of the company's stock worth $762,000 after acquiring an additional 3,612 shares in the last quarter. Finally, Hedeker Wealth LLC purchased a new stake in shares of NIO during the 2nd quarter worth approximately $43,000. Institutional investors and hedge funds 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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