NIO (NYSE:NIO) Shares Down 7.2% - Should You Sell?

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.

NIO Inc. (NYSE:NIO - Get Free Report)'s share price fell 7.2% during mid-day trading on Tuesday . The stock traded as low as $4.48 and last traded at $4.56. 38,756,879 shares were traded during mid-day trading, a decline of 24% from the average session volume of 51,239,426 shares. The stock had previously closed at $4.91.

Analyst Upgrades and Downgrades

Several research firms recently commented on NIO. Mizuho cut their target price on shares of NIO from $4.00 to $3.50 and set a "neutral" rating for the company in a research note on Tuesday, June 3rd. The Goldman Sachs Group raised shares of NIO from a "sell" rating to a "neutral" rating and upped their price objective for the company from $3.70 to $3.80 in a research report on Tuesday, June 17th. Morgan Stanley reissued a "buy" rating on shares of NIO in a research report on Monday, July 14th. JPMorgan Chase & Co. boosted their price target on NIO from $4.10 to $4.80 and gave the company a "neutral" rating in a research note on Thursday. Finally, Barclays reduced their price objective on NIO from $4.00 to $3.00 and set an "underweight" rating for the company in a research report on Wednesday, June 4th. One analyst has rated the stock with a sell rating, nine have assigned a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of $4.76.

NIO Stock Up 7.9%

The company has a quick ratio of 0.69, a current ratio of 0.84 and a debt-to-equity ratio of 1.89. The business has a 50-day simple moving average of $4.08 and a two-hundred day simple moving average of $4.08. The stock has a market capitalization of $10.02 billion, a P/E ratio of -2.96 and a beta of 1.42.

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

Institutional Trading of NIO

Hedge funds have recently modified their holdings of the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in NIO by 3,966.7% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 5,316,291 shares of the company's stock valued at $20,255,000 after acquiring an additional 5,185,565 shares in the last quarter. Kingstone Capital Partners Texas LLC bought a new stake in shares of NIO during the second quarter valued at approximately $12,315,000. SG Americas Securities LLC increased its holdings in shares of NIO by 83.3% in the first quarter. SG Americas Securities LLC now owns 2,109,761 shares of the company's stock valued at $8,038,000 after purchasing an additional 958,750 shares in the last quarter. Vontobel Holding Ltd. increased its holdings in shares of NIO by 125.2% in the second quarter. Vontobel Holding Ltd. now owns 1,094,398 shares of the company's stock valued at $3,754,000 after purchasing an additional 608,377 shares in the last quarter. Finally, Hsbc Holdings PLC raised its position in NIO by 96.6% in the 1st quarter. Hsbc Holdings PLC now owns 1,039,162 shares of the company's stock worth $3,964,000 after purchasing an additional 510,610 shares during the last quarter. Institutional investors and hedge funds own 48.55% of the company's stock.

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.