NIO (NYSE:NIO) Stock Falls 1.3% - Time to Sell?

Key Points

• NIO shares fell 1.3% to $3.624 during mid-day trading, with volume 25% below the stock’s average daily level.
• Analyst sentiment is mixed but leans cautious: NIO has an average rating of “Hold” and a consensus price target of $5.87, while JPMorgan downgraded the stock to Neutral and cut its target to $4.50.
• The company continues to report weak profitability, including a negative net margin of 3.95%, negative return on equity of 111.37%, and a projected full-year loss of $0.13 per share.

NIO Inc. (NYSE:NIO - Get Free Report)'s share price traded down 1.3% during mid-day trading on Thursday. The stock traded as low as $3.57 and last traded at $3.6240. 27,970,482 shares changed hands during trading, a decline of 25% from the average daily volume of 37,498,016 shares. The stock had previously closed at $3.67.

Analysts Set New Price Targets

NIO has been the subject of a number of research reports. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of NIO in a report on Wednesday, July 29th. JPMorgan Chase & Co. cut NIO from an "overweight" rating to a "neutral" rating and dropped their price target for the company from $7.00 to $4.50 in a research report on Wednesday, September 2nd. Citigroup reaffirmed a "buy" rating on shares of NIO in a research report on Tuesday, September 1st. Zacks Research lowered NIO from a "strong-buy" rating to a "hold" rating in a report on Wednesday, September 2nd. Finally, Freedom Broker cut 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, seven have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, NIO currently has an average rating of "Hold" and a consensus price target of $5.87.

NIO Trading Down 1.3%

The company has a quick ratio of 0.89, a current ratio of 1.02 and a debt-to-equity ratio of 2.11. The business's fifty day moving average is $4.32 and its 200 day moving average is $5.19. The stock has a market cap of $9.00 billion, a PE ratio of -13.42 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 earnings per share (EPS) for the quarter. The company 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%. As a group, analysts predict that NIO Inc. will post -0.13 earnings per share for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Persistent Asset Partners Ltd purchased a new position in NIO during the 2nd quarter valued at about $34,000. Global Retirement Partners LLC purchased a new stake in NIO in the 2nd quarter valued at approximately $34,000. Wellington Altus USA Inc. acquired a new stake in NIO during the 2nd quarter valued at $35,000. Eurizon Capital SGR S.p.A. acquired a new position in shares of NIO in the fourth quarter worth $41,000. Finally, Merkkuri Wealth Advisors LLC purchased a new stake in shares of NIO in the first quarter valued at $41,000. Institutional investors and hedge funds own 48.55% of the company's stock.

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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