NIO (NYSE:NIO) Shares Climb 1.3% - Here's What Happened

Key Points

• NIO shares rose 1.3% to $3.4150 in mid-day trading, although volume was about 30% below the stock’s average daily volume.
• Analyst sentiment remains cautious: the stock has an average “Hold” rating and a consensus price target of $5.87, with several firms recently downgrading NIO or cutting their price targets.
• NIO continues to report weak profitability, including a negative net margin of 3.95% and negative return on equity of 111.37%; institutional investors and hedge funds own 48.55% of the company.

NIO Inc. (NYSE:NIO - Get Free Report) was up 1.3% on Monday. The company traded as high as $3.47 and last traded at $3.4150. 25,941,420 shares changed hands during mid-day trading, a decline of 30% from the average daily volume of 37,248,477 shares. The stock had previously closed at $3.37.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on the company. Freedom Broker cut NIO from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, September 2nd. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of NIO in a research report on Wednesday, July 29th. JPMorgan Chase & Co. downgraded NIO from an "overweight" rating to a "neutral" rating and cut their price target for the stock from $7.00 to $4.50 in a research note on Wednesday, September 2nd. Zacks Research lowered NIO from a "strong-buy" rating to a "hold" rating in a report on Wednesday, September 2nd. Finally, 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 note on Wednesday, September 2nd. Six research analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $5.87.

NIO Stock Performance

The company has a debt-to-equity ratio of 2.11, a quick ratio of 0.89 and a current ratio of 1.02. The firm's 50 day moving average is $4.14 and its 200-day moving average is $5.09. The firm has a market cap of $8.48 billion, a price-to-earnings ratio of -12.65 and a beta of 0.92.

NIO (NYSE:NIO - Get Free Report) last issued its quarterly earnings data 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 net margin of 3.95% and a negative return on equity of 111.37%. Sell-side analysts anticipate that NIO Inc. will post -0.13 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. V Square Quantitative Management LLC boosted its position in NIO by 17.4% during the first quarter. V Square Quantitative Management LLC now owns 13,707 shares of the company's stock worth $83,000 after purchasing an additional 2,027 shares during the period. WCG Wealth Advisors LLC raised its position in shares of NIO by 6.2% in the fourth quarter. WCG Wealth Advisors LLC now owns 55,549 shares of the company's stock valued at $283,000 after purchasing an additional 3,249 shares during the period. Engineers Gate Manager LP lifted its stake in shares of NIO by 2.4% in the second quarter. Engineers Gate Manager LP now owns 152,990 shares of the company's stock worth $774,000 after buying an additional 3,537 shares during the last quarter. Van ECK Associates Corp lifted its stake in shares of NIO by 0.8% in the second quarter. Van ECK Associates Corp now owns 492,784 shares of the company's stock worth $2,493,000 after buying an additional 4,002 shares during the last quarter. Finally, EverSource Wealth Advisors LLC boosted its holdings in shares of NIO by 120.7% during the 1st quarter. EverSource Wealth Advisors LLC now owns 8,015 shares of the company's stock worth $48,000 after buying an additional 4,383 shares during the period. Institutional investors and hedge funds own 48.55% of the company's stock.

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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