NIO (NYSE:NIO) Trading 6.8% Higher - Still a Buy?

Key Points

• Shares jumped 6.8% to $6.865 on Thursday on roughly 42 million shares traded, while analysts remain mixed — the MarketBeat consensus is a "Hold" with an average target of $6.80 even as Nomura, DBS and Macquarie have recently upgraded the stock.
• Underlying fundamentals are strained: NIO reported $4.95 billion in quarterly revenue and $0.04 EPS but a -17.21% net margin, a -924.56% ROE, a debt/equity of 2.08, and analysts project -1.43 EPS for the current fiscal year.

NIO Inc. (NYSE:NIO - Get Free Report)'s stock price rose 6.8% during trading on Thursday . The company traded as high as $6.88 and last traded at $6.8650. Approximately 42,001,587 shares changed hands during mid-day trading, a decline of 7% from the average daily volume of 45,178,219 shares. The stock had previously closed at $6.43.

Wall Street Analyst Weigh In

NIO has been the subject of a number of research reports. Nomura raised shares of NIO from a "neutral" rating to a "buy" rating and set a $6.60 target price for the company in a report on Wednesday, March 11th. Dbs Bank raised shares of NIO from a "hold" rating to a "moderate buy" rating in a report on Monday, March 16th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of NIO in a report on Monday, December 29th. Macquarie Infrastructure raised shares of NIO from a "neutral" rating to an "outperform" rating and set a $6.10 target price for the company in a report on Thursday, January 15th. Finally, Bank of America reaffirmed a "neutral" rating on shares of NIO in a report on Tuesday, March 10th. Seven analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, NIO has an average rating of "Hold" and a consensus target price of $6.80.

NIO Stock Up 6.8%

The firm has a market capitalization of $15.77 billion, a PE ratio of -7.08 and a beta of 0.99. The business's fifty day moving average price is $5.50 and its 200 day moving average price is $5.68. The company has a quick ratio of 0.87, a current ratio of 0.98 and a debt-to-equity ratio of 2.08.

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 firm had revenue of $4.95 billion during the quarter. NIO had a negative net margin of 17.21% and a negative return on equity of 924.56%. On average, equities research analysts forecast that NIO Inc. will post -1.43 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Atlantic Union Bankshares Corp raised its holdings in NIO by 98.3% during the fourth quarter. Atlantic Union Bankshares Corp now owns 5,950 shares of the company's stock worth $30,000 after purchasing an additional 2,950 shares in the last quarter. Farther Finance Advisors LLC boosted its position in shares of NIO by 148.3% during the 3rd quarter. Farther Finance Advisors LLC now owns 4,817 shares of the company's stock worth $37,000 after purchasing an additional 2,877 shares in the last quarter. Arax Advisory Partners boosted its position in shares of NIO by 81.6% during the 4th quarter. Arax Advisory Partners now owns 7,758 shares of the company's stock worth $40,000 after purchasing an additional 3,487 shares in the last quarter. Eurizon Capital SGR S.p.A. purchased a new stake in shares of NIO during the 4th quarter worth $41,000. Finally, MV Capital Management Inc. purchased a new stake in shares of NIO during the 4th quarter worth $42,000. 48.55% of the stock is owned by hedge funds and other institutional investors.

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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