NIO (NYSE:NIO) Hits New 12-Month Low - Time to Sell?

Key Points

• NIO shares hit a new 52-week low, trading as low as $3.37 and last changing hands around $3.415, with the stock well below its 50-day and 200-day moving averages.
• Analyst sentiment has weakened: JPMorgan, RBC, Bernstein and Zacks Research recently downgraded or reduced their outlooks. NIO carries an average “Hold” rating and an average price target of $5.87.
• The company continues to report profitability challenges, including a negative return on equity of 111.37% and an expected full-year loss of $0.13 per share, although institutional investors increased their holdings and own 48.55% of the stock.

NIO Inc. (NYSE:NIO - Get Free Report)'s share price hit a new 52-week low during trading on Monday. The stock traded as low as $3.37 and last traded at $3.4150, with a volume of 1070809 shares trading hands. The stock had previously closed at $3.37.

Analyst Ratings Changes

A number of research analysts have commented on the stock. JPMorgan Chase & Co. cut shares of NIO from an "overweight" rating to a "neutral" rating and decreased their target price for the company from $7.00 to $4.50 in a research report on Wednesday, September 2nd. Royal Bank Of Canada lowered NIO to a "sector perform" rating in a research report on Thursday, September 3rd. Sanford C. Bernstein lowered their price target on NIO from $6.00 to $5.00 and set a "market perform" rating for the company in a research report on Wednesday, September 2nd. Weiss Ratings reiterated a "sell (e+)" rating on shares of NIO in a report on Wednesday, July 29th. Finally, Zacks Research cut NIO from a "strong-buy" rating to a "hold" rating in a report on Wednesday, September 2nd. Six analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, NIO presently has an average rating of "Hold" and an average target price of $5.87.

NIO Stock Up 1.9%

The firm has a market cap of $8.53 billion, a PE ratio of -12.76 and a beta of 0.92. The company has a quick ratio of 0.89, a current ratio of 1.02 and a debt-to-equity ratio of 2.11. The business has a 50-day moving average price of $4.14 and a two-hundred day moving average price of $5.09.

NIO (NYSE:NIO - Get Free Report) last released 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 during the quarter. NIO had a negative return on equity of 111.37% and a negative net margin of 3.95%. On average, equities research analysts expect that NIO Inc. will post -0.13 EPS for the current year.

Institutional Trading of NIO

Institutional investors and hedge funds have recently made changes to their positions in the company. Renaissance Technologies LLC grew its holdings in shares of NIO by 70.2% during the first quarter. Renaissance Technologies LLC now owns 14,452,131 shares of the company's stock worth $87,146,000 after buying an additional 5,962,731 shares during the last quarter. Bank of America Corp DE raised its stake in NIO by 99.0% during the 1st quarter. Bank of America Corp DE now owns 14,228,916 shares of the company's stock valued at $85,800,000 after acquiring an additional 7,079,903 shares during the last quarter. SG Americas Securities LLC lifted its position in NIO by 67.2% during the 1st quarter. SG Americas Securities LLC now owns 5,027,161 shares of the company's stock worth $30,314,000 after acquiring an additional 2,020,754 shares during the period. Assenagon Asset Management S.A. acquired a new stake in NIO during the 2nd quarter worth approximately $19,008,000. Finally, Hsbc Holdings PLC grew its stake in shares of NIO by 651.5% in the 2nd 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. 48.55% of the stock is owned by hedge funds and other institutional investors.

NIO Company Profile

NIO Inc is a Chinese technology and electric vehicle company headquartered in Shanghai. Founded in 2014, the company designs, develops and sells smart electric vehicles, including SUVs, sedans and other passenger vehicles. Its product portfolio has included models such as the ES6, ES7, ES8, ET5, ET5T and ET7, with model names varying by market.

In addition to vehicle sales, NIO provides related services and technologies, including battery-swapping stations, charging services, mobile charging, digital connectivity and driver-assistance features.

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