NIO (NYSE:NIO) Shares Down 3.2% - Should You Sell?

Key Points

• NIO shares fell 3.2% to $3.195, with trading volume about 40% above its average.
• Analyst views are mixed: six rate the stock Buy, seven Hold and two Sell, producing a consensus Hold rating and a $5.78 average price target.
• NIO reported quarterly revenue of $4.73 billion and zero earnings per share; analysts expect a loss of $0.13 per share for the current year.

NIO Inc. (NYSE:NIO - Get Free Report)'s share price was down 3.2% during trading on Thursday. The stock traded as low as $3.10 and last traded at $3.1950. Approximately 50,986,237 shares were traded during mid-day trading, an increase of 40% from the average session volume of 36,526,984 shares. The stock had previously closed at $3.30.

Wall Street Analysts Forecast Growth

NIO has been the topic of several research analyst reports. The Goldman Sachs Group reissued a "buy" rating and set a $6.10 target price on shares of NIO in a research report on Friday, September 4th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of NIO in a report on Tuesday, October 27th. Royal Bank Of Canada downgraded shares of NIO to a "sector perform" rating in a research note on Thursday, September 3rd. JPMorgan Chase & Co. dropped their price objective on shares of NIO from $4.50 to $3.70 and set a "neutral" rating on the stock in a report on Monday, October 26th. Finally, Citigroup reissued a "buy" rating on shares of NIO in a research report on Tuesday, September 1st. 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 MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $5.78.

NIO Trading Down 3.2%

The company's fifty day moving average is $3.58 and its two-hundred day moving average is $4.87. 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 company has a market cap of $7.93 billion, a price-to-earnings ratio of -11.83 and a beta of 0.89.

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

Hedge Funds Weigh In On NIO

A number of large investors have recently added to or reduced their stakes in the stock. 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 in the last quarter. Bank of America Corp DE raised 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 buying 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 about $19,008,000. Hsbc Holdings PLC raised 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 buying an additional 1,387,656 shares during the last quarter. Finally, ABC Arbitrage SA purchased a new position in shares of NIO in the first quarter worth about $4,043,000. 48.55% of the stock is currently owned by institutional investors and hedge funds.

NIO Company Profile

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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