NIO (NYSE:NIO) Trading Down 3.8% - Should You Sell?

Key Points

• NIO's stock price fell by 3.8% during recent trading, closing at $4.45, with a trading volume significantly below average.
• Analyst ratings for NIO are mixed, with one sell, nine hold, two buy, and one strong buy rating, and an average target price of $4.76.
• The company reported a loss of ($0.45) EPS for the last quarter, which was below the consensus estimate, with revenue also falling short at $1.66 billion.

NIO Inc. (NYSE:NIO - Get Free Report)'s stock price fell 3.8% during trading on Thursday . The stock traded as low as $4.37 and last traded at $4.45. 21,417,831 shares were traded during mid-day trading, a decline of 58% from the average session volume of 51,379,031 shares. The stock had previously closed at $4.62.

Analyst Upgrades and Downgrades

Several research firms have commented on NIO. Morgan Stanley reiterated a "buy" rating on shares of NIO in a report on Monday, July 14th. Mizuho decreased their price target on shares of NIO from $4.00 to $3.50 and set a "neutral" rating on the stock in a research note on Tuesday, June 3rd. JPMorgan Chase & Co. upped their price target on shares of NIO from $4.10 to $4.80 and gave the company a "neutral" rating in a research note on Thursday. Citigroup restated a "buy" rating on shares of NIO in a research note on Monday, April 28th. Finally, The Goldman Sachs Group upgraded shares of NIO from a "sell" rating to a "neutral" rating and upped their price target for the company from $3.70 to $3.80 in a research note on Tuesday, June 17th. One investment analyst has rated the stock with a sell rating, nine have given a hold rating, two have assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, NIO presently has an average rating of "Hold" and an average target price of $4.76.

NIO Price Performance

The company's 50-day moving average is $4.04 and its two-hundred day moving average is $4.08. The company has a debt-to-equity ratio of 1.89, a current ratio of 0.84 and a quick ratio of 0.69. The firm has a market cap of $9.28 billion, a P/E ratio of -2.74 and a beta of 1.42.

NIO (NYSE:NIO - Get Free Report) last posted its quarterly earnings data 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 for the quarter, compared to the consensus estimate of $12.46 billion. During the same period in the prior year, the company earned ($2.39) EPS. The company's revenue for the quarter was up 21.5% compared to the same quarter last year. Sell-side analysts anticipate that NIO Inc. will post -1.43 EPS for the current fiscal year.

Institutional Investors Weigh In On NIO

Several institutional investors and hedge funds have recently bought and sold shares of the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of NIO by 3,966.7% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 5,316,291 shares of the company's stock worth $20,255,000 after acquiring an additional 5,185,565 shares during the last quarter. Kingstone Capital Partners Texas LLC bought a new position in shares of NIO in the second quarter worth about $12,315,000. Invesco Ltd. lifted its holdings in shares of NIO by 22.7% in the second quarter. Invesco Ltd. now owns 2,738,308 shares of the company's stock worth $9,392,000 after acquiring an additional 506,618 shares during the last quarter. SG Americas Securities LLC lifted 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 worth $8,038,000 after acquiring an additional 958,750 shares during the last quarter. Finally, Bridgewater Associates LP lifted its holdings in shares of NIO by 28.6% in the fourth quarter. Bridgewater Associates LP now owns 1,185,674 shares of the company's stock worth $5,170,000 after acquiring an additional 263,338 shares during the last quarter. 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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