NIO (NYSE:NIO) Shares Down 2.8% - Here's Why

Key Points

• NIO shares fell 2.8% to about $3.69 on above-average trading volume, with nearly 49.8 million shares changing hands.
• Several analysts recently downgraded NIO or cut their price targets, including JPMorgan, RBC, Bernstein, Zacks Research and Freedom Broker. The stock has a consensus “Hold” rating and an average target price of $6.21.
• NIO remains unprofitable, reporting zero quarterly EPS, a negative 3.95% net margin and negative 111.37% return on equity. Institutional investors and hedge funds own approximately 48.55% of the company.

Shares of NIO Inc. (NYSE:NIO - Get Free Report) were down 2.8% on Wednesday . The company traded as low as $3.68 and last traded at $3.6850. 49,798,477 shares changed hands during trading, an increase of 31% from the average daily volume of 37,909,855 shares. The stock had previously closed at $3.79.

Analyst Ratings Changes

Several research firms recently issued reports on NIO. Zacks Research cut shares of NIO from a "strong-buy" rating to a "hold" rating in a report on Wednesday, September 2nd. Freedom Broker downgraded shares of NIO from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, September 2nd. Royal Bank Of Canada lowered shares of NIO to a "sector perform" rating in a research note on Thursday, September 3rd. Sanford C. Bernstein reduced their price target on shares of NIO from $6.00 to $5.00 and set a "market perform" rating on the stock in a research report on Wednesday, September 2nd. Finally, JPMorgan Chase & Co. lowered NIO from an "overweight" rating to a "neutral" rating and lowered their price objective for the company from $7.00 to $4.50 in a report on Wednesday, September 2nd. Six research analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $6.21.

NIO Stock Down 2.8%

The stock's fifty day simple moving average is $4.59 and its two-hundred day simple moving average is $5.29. The company has a debt-to-equity ratio of 2.11, a current ratio of 1.02 and a quick ratio of 0.89. The company has a market capitalization of $9.15 billion, a price-to-earnings ratio of -13.65 and a beta of 0.92.

NIO (NYSE:NIO - Get Free Report) last posted its quarterly earnings results on Saturday, August 15th. The company reported $0.00 EPS for the quarter. NIO had a negative net margin of 3.95% and a negative return on equity of 111.37%. The business had revenue of $4.73 billion during the quarter. On average, sell-side analysts predict that NIO Inc. will post -0.16 earnings per share for the current fiscal year.

Institutional Trading of NIO

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Atlantic Union Bankshares Corp grew its stake in NIO by 98.3% during the 4th quarter. Atlantic Union Bankshares Corp now owns 5,950 shares of the company's stock worth $30,000 after buying an additional 2,950 shares during the last quarter. Persistent Asset Partners Ltd bought a new stake in NIO in the second quarter valued at $34,000. Merkkuri Wealth Advisors LLC acquired a new position in shares of NIO during the first quarter valued at $41,000. Global Retirement Partners LLC acquired a new position in shares of NIO during the second quarter valued at $34,000. Finally, Arax Advisory Partners grew its position in shares of NIO by 81.6% during the fourth quarter. Arax Advisory Partners now owns 7,758 shares of the company's stock worth $40,000 after acquiring an additional 3,487 shares during the last quarter. 48.55% of the stock is currently owned by institutional investors and hedge funds.

About NIO

NIO Inc is a pioneer in the premium electric vehicle (EV) segment, dedicated to the design, development and manufacture of smart, high-performance EVs. Established in November 2014 and headquartered in Shanghai, China, the company focuses on integrating cutting-edge electric propulsion, advanced connectivity and autonomous driving technologies into its automotive platforms. NIO's vision centers on creating a holistic user experience that extends beyond the vehicle itself, encompassing energy services and digital solutions.

The company's product lineup includes flagship SUVs and sedans such as the ES8, ES6, EC6, ET7 and ET5, each engineered to deliver strong performance, long range and a suite of intelligent driver-assistance features.

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