NIO (NYSE:NIO) Shares Up 1.2% - Still a Buy?

Key Points

• NIO shares rose 1.2% to $3.7150 in mid-day trading, with volume broadly in line with its average and the stock trading below its 50-day and 200-day moving averages.
• Analyst sentiment has weakened, with several firms downgrading NIO; the consensus rating is now “Hold” from 16 analysts, with an average price target of $5.98.
• NIO reported $4.73 billion in quarterly revenue and break-even earnings per share, but continues to post negative profitability metrics, including a 111.37% negative return on equity; institutions and hedge funds own 48.55% of the stock.

NIO Inc. (NYSE:NIO - Get Free Report)'s share price was up 1.2% during trading on Tuesday . The company traded as high as $3.79 and last traded at $3.7150. 38,345,304 shares changed hands during mid-day trading, an increase of 2% from the average session volume of 37,615,656 shares. The stock had previously closed at $3.67.

Analyst Ratings Changes

A number of analysts have recently weighed in on NIO shares. Royal Bank Of Canada lowered NIO to a "sector perform" rating in a research note on Thursday, September 3rd. Freedom Broker downgraded shares of NIO from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, September 2nd. Citigroup reissued a "buy" rating on shares of NIO in a report on Tuesday, September 1st. JPMorgan Chase & Co. downgraded shares of NIO from an "overweight" rating to a "neutral" rating and dropped their target price for the stock from $7.00 to $4.50 in a research note on Wednesday, September 2nd. Finally, Zacks Research lowered shares of NIO from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, September 2nd. Six equities 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 company's stock. According to MarketBeat.com, NIO currently has a consensus rating of "Hold" and a consensus price target of $5.98.

NIO Stock Performance

The firm has a fifty day moving average of $4.37 and a 200-day moving average of $5.21. The firm has a market cap of $9.22 billion, a P/E ratio of -13.76 and a beta of 0.92. The company has a quick ratio of 0.89, a current ratio of 1.02 and a debt-to-equity ratio of 2.11.

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

Hedge Funds Weigh In On NIO

A number of large investors have recently modified their holdings of NIO. Persistent Asset Partners Ltd acquired a new stake in NIO in the 2nd quarter valued at about $34,000. Merkkuri Wealth Advisors LLC acquired a new position in NIO during the first quarter worth approximately $41,000. Global Retirement Partners LLC bought a new stake in NIO in the second quarter valued at approximately $34,000. Wellington Altus USA Inc. acquired a new position in shares of NIO during the 2nd quarter worth approximately $35,000. Finally, EverSource Wealth Advisors LLC raised its stake in NIO by 120.7% in the 1st quarter. EverSource Wealth Advisors LLC now owns 8,015 shares of the company's stock valued at $48,000 after acquiring an additional 4,383 shares during the period. 48.55% of the stock is currently owned by institutional investors and hedge funds.

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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