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

Key Points

• NIO shares hit a new 52-week low, falling to $3.57 during Tuesday trading on volume of approximately 21.4 million shares.
• Analyst sentiment has weakened, with multiple firms downgrading the stock; NIO has an overall “Hold” consensus rating and an average price target of $6.21.
• The company remains financially challenged, reporting negative return on equity and a negative net margin, while analysts expect a full-year loss of approximately $0.16 per share.

NIO Inc. (NYSE:NIO - Get Free Report) reached a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $3.57 and last traded at $3.5750, with a volume of 21389836 shares changing hands. The stock had previously closed at $3.67.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the company. Royal Bank Of Canada lowered NIO to a "sector perform" rating in a research report on Thursday, September 3rd. Freedom Broker cut shares of NIO from a "strong-buy" rating to a "hold" rating in a report on Wednesday, September 2nd. Weiss Ratings restated a "sell (e+)" rating on shares of NIO in a research report on Wednesday, July 29th. Bank of America restated a "neutral" rating and issued a $6.80 target price on shares of NIO in a report on Thursday, May 21st. Finally, Zacks Research downgraded NIO from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, September 2nd. Six investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $6.21.

NIO Trading Down 2.3%

The firm has a market capitalization of $8.90 billion, a price-to-earnings ratio of -13.20 and a beta of 0.92. The company has a fifty day moving average price of $4.50 and a 200-day moving average price of $5.25. The company has a current ratio of 1.02, a quick ratio of 0.89 and a debt-to-equity ratio of 2.11.

NIO (NYSE:NIO - Get Free Report) last released its quarterly earnings data on Saturday, August 15th. The company reported $0.00 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 research analysts predict that NIO Inc. will post -0.16 EPS for the current year.

Institutional Investors Weigh In On NIO

Several institutional investors and hedge funds have recently modified their holdings of the business. Engineers Gate Manager LP raised its position in NIO by 2.4% in the 2nd quarter. Engineers Gate Manager LP now owns 152,990 shares of the company's stock valued at $774,000 after purchasing an additional 3,537 shares during the last quarter. NewEdge Advisors LLC grew its holdings in shares of NIO by 2,045.0% during the second quarter. NewEdge Advisors LLC now owns 11,261 shares of the company's stock worth $57,000 after purchasing an additional 10,736 shares during the last quarter. Nykredit A S bought a new stake in shares of NIO during the second quarter worth $964,000. Corient Private Wealth LP increased its stake in shares of NIO by 11.0% in the second quarter. Corient Private Wealth LP now owns 46,441 shares of the company's stock valued at $235,000 after buying an additional 4,593 shares in the last quarter. Finally, HighTower Advisors LLC increased its stake in shares of NIO by 15.7% in the second quarter. HighTower Advisors LLC now owns 68,866 shares of the company's stock valued at $348,000 after buying an additional 9,357 shares in the last quarter. Institutional investors and hedge funds own 48.55% of the company's stock.

About NIO

NIO Inc is a Chinese smart electric vehicle company founded in 2014 and headquartered in Shanghai. The company designs, develops and sells battery-powered passenger vehicles, with a focus on combining electric mobility with digital connectivity, autonomous-driving capabilities and premium user services.

NIO's vehicle lineup has included electric SUVs, sedans and station wagons marketed under the NIO brand. Its services include battery charging and swapping, mobile charging, battery upgrades, vehicle financing and maintenance support.

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