NIO (NYSE:NIO) Hits New 1-Year Low After Analyst Downgrade

Key Points

• NIO shares hit a new 52-week low, falling to $3.24 after JPMorgan cut its price target from $4.50 to $3.70 while maintaining a neutral rating.
• Analyst sentiment is mixed but leans toward caution: NIO has a consensus “Hold” rating and an average price target of $5.78, with six Buy, seven Hold, and two Sell ratings.
• Institutional ownership remains significant at 48.55%, even as NIO continues to report weak profitability, including a negative 111.37% return on equity and an expected full-year loss.

NIO Inc. (NYSE:NIO - Get Free Report)'s share price reached a new 52-week low during trading on Monday after JPMorgan Chase & Co. lowered their price target on the stock from $4.50 to $3.70. JPMorgan Chase & Co. currently has a neutral rating on the stock. NIO traded as low as $3.24 and last traded at $3.2450, with a volume of 12,861,245 shares. The stock had previously closed at $3.29.

A number of other brokerages have also weighed in on NIO. Freedom Broker lowered NIO from a "strong-buy" rating to a "hold" rating in a report on Wednesday, September 2nd. The Goldman Sachs Group reissued a "buy" rating and issued a $6.10 target price on shares of NIO in a report on Friday, September 4th. Zacks Research lowered shares of NIO from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, September 2nd. Citigroup reissued a "buy" rating on shares of NIO in a report on Tuesday, September 1st. Finally, Royal Bank Of Canada lowered shares of NIO to a "sector perform" rating in a research report on Thursday, September 3rd. Six investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have issued 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 $5.78.

Institutional Investors Weigh In On NIO

Institutional investors and hedge funds have recently made changes to their positions in the business. Renaissance Technologies LLC increased its holdings in NIO by 70.2% during the 1st quarter. Renaissance Technologies LLC now owns 14,452,131 shares of the company's stock valued at $87,146,000 after acquiring an additional 5,962,731 shares in the last quarter. Bank of America Corp DE grew its position in shares of NIO by 99.0% in the first quarter. Bank of America Corp DE now owns 14,228,916 shares of the company's stock valued at $85,800,000 after purchasing an additional 7,079,903 shares during the last quarter. Assenagon Asset Management S.A. acquired a new stake in shares of NIO in the second quarter valued at approximately $19,008,000. Hsbc Holdings PLC grew its position in shares of NIO by 651.5% in the second quarter. Hsbc Holdings PLC now owns 1,600,640 shares of the company's stock valued at $8,051,000 after purchasing an additional 1,387,656 shares during the last quarter. Finally, ABC Arbitrage SA purchased a new position in shares of NIO during the 1st quarter worth approximately $4,043,000. 48.55% of the stock is currently owned by hedge funds and other institutional investors.

NIO Stock Performance

The company has a current ratio of 1.02, a quick ratio of 0.89 and a debt-to-equity ratio of 2.11. The firm has a market capitalization of $8.08 billion, a PE ratio of -12.06 and a beta of 0.92. The stock's 50 day moving average price is $3.77 and its two-hundred day moving average price is $4.84.

NIO (NYSE:NIO - Get Free Report) last posted its earnings results on Saturday, August 15th. The company reported $0.00 earnings per share (EPS) for the quarter. The firm had revenue of $4.73 billion for the quarter. NIO had a negative return on equity of 111.37% and a negative net margin of 3.95%. On average, equities analysts expect that NIO Inc. will post -0.13 earnings per share for the current year.

About NIO

NIO Inc is a Chinese smart electric vehicle manufacturer founded in 2014 and headquartered in Shanghai. The company develops, manufactures and sells premium battery-powered passenger vehicles, including sedans, SUVs and coupés. Its vehicle lineup has included models such as the ET7, ET5, ES6, EL6, EL7 and EC6, along with newer vehicles introduced under the NIO and ONVO brands.

In addition to vehicle sales, NIO provides related services and technologies designed to support electric vehicle ownership.

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