NIO (NYSE:NIO) Shares Down 4.6% - Here's What Happened

Key Points

• NIO shares fell 4.6% to $3.3950 on Wednesday, with trading volume slightly below its average.
• Analyst opinions remain mixed: six rate the stock a Buy, seven a Hold and two a Sell, resulting in a consensus Hold rating and an average price target of $5.87.
• NIO continues to report weak profitability, including a negative net margin of 3.95% and negative return on equity of 111.37%, while institutional investors own 48.55% of the shares.

NIO Inc. (NYSE:NIO - Get Free Report)'s share price fell 4.6% during trading on Wednesday. The stock traded as low as $3.38 and last traded at $3.3950. Approximately 35,479,754 shares changed hands during trading, a decline of 4% from the average daily volume of 37,132,805 shares. The stock had previously closed at $3.56.

Analyst Upgrades and Downgrades

A number of analysts have commented on NIO shares. The Goldman Sachs Group restated a "buy" rating and set a $6.10 price target on shares of NIO in a research report on Friday, September 4th. Weiss Ratings reiterated a "sell (e+)" rating on shares of NIO in a report on Wednesday, July 29th. JPMorgan Chase & Co. lowered shares of 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 research note on Wednesday, September 2nd. Zacks Research lowered shares of NIO from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, September 2nd. Finally, Citigroup reissued a "buy" rating on shares of NIO in a report on Tuesday, September 1st. Six analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $5.87.

NIO Price 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 company's 50 day moving average price is $3.96 and its 200-day moving average price is $4.98. The company has a market cap of $8.43 billion, a price-to-earnings ratio of -12.57 and a beta of 0.92.

NIO (NYSE:NIO - Get Free Report) last released its earnings results on Saturday, August 15th. The company reported $0.00 EPS for the quarter. The business 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%. On average, equities research analysts forecast that NIO Inc. will post -0.13 earnings per share for the current fiscal year.

Institutional Investors Weigh In On NIO

Several large investors have recently modified their holdings of the stock. Renaissance Technologies LLC raised its position 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 purchasing an additional 5,962,731 shares during the period. Bank of America Corp DE lifted its holdings in shares of NIO by 99.0% during 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 purchasing an additional 7,079,903 shares during the last quarter. SG Americas Securities LLC lifted its holdings in shares of NIO by 67.2% during the first quarter. SG Americas Securities LLC now owns 5,027,161 shares of the company's stock valued at $30,314,000 after purchasing an additional 2,020,754 shares during the last quarter. Assenagon Asset Management S.A. acquired a new position in shares of NIO in the 2nd quarter valued at $19,008,000. Finally, Hsbc Holdings PLC boosted its position 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 period. 48.55% of the stock is owned by institutional investors.

About NIO

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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