NIO (NYSE:NIO) Stock Falls 3.8% - Here's Why

Key Points

• NIO shares fell 3.8% to approximately $3.20 in Friday trading, with volume slightly below the stock’s average daily level.
• Analyst sentiment is mixed but leans cautious: Zacks downgraded NIO to “hold,” Bernstein and RBC lowered their ratings or targets, while Goldman Sachs maintained a “buy” rating. The consensus rating is “Hold,” with a $5.78 price target.
• NIO reported quarterly revenue of $4.73 billion and breakeven EPS, but continues to post weak profitability, including a negative 111.37% return on equity and a projected full-year loss of $0.13 per share.

NIO Inc. (NYSE:NIO - Get Free Report) was down 3.8% during trading on Friday. The stock traded as low as $3.16 and last traded at $3.1950. Approximately 33,876,152 shares were traded during mid-day trading, a decline of 7% from the average daily volume of 36,514,160 shares. The stock had previously closed at $3.32.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on NIO shares. Zacks Research cut NIO from a "strong-buy" rating to a "hold" rating in a report on Wednesday, September 2nd. Weiss Ratings restated a "sell (e+)" rating on shares of NIO in a research report on Tuesday. Sanford C. Bernstein lowered their price target on NIO from $6.00 to $5.00 and set a "market perform" rating for the company in a research note on Wednesday, September 2nd. The Goldman Sachs Group reiterated a "buy" rating and issued a $6.10 price target on shares of NIO in a research report on Friday, September 4th. Finally, Royal Bank Of Canada lowered shares of NIO to a "sector perform" rating in a research note on Thursday, September 3rd. Six analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, NIO currently has a consensus rating of "Hold" and a consensus target price of $5.78.

NIO Stock Performance

The stock's 50 day moving average is $3.68 and its two-hundred day moving average is $4.90. The stock has a market capitalization of $7.93 billion, a price-to-earnings ratio of -11.83 and a beta of 0.92. The company has a current ratio of 1.02, a quick ratio of 0.89 and a debt-to-equity ratio of 2.11.

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

Institutional Trading of NIO

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Mirae Asset Global Investments Co. Ltd. bought a new stake in NIO during the third quarter worth $388,000. Profund Advisors LLC lifted its stake in NIO by 2.7% in the third quarter. Profund Advisors LLC now owns 214,985 shares of the company's stock valued at $737,000 after acquiring an additional 5,557 shares during the last quarter. Vise Technologies Inc. grew its position in shares of NIO by 26.3% in the 3rd quarter. Vise Technologies Inc. now owns 95,108 shares of the company's stock valued at $326,000 after acquiring an additional 19,797 shares during the period. Apollon Wealth Management LLC bought a new position in shares of NIO in the 3rd quarter valued at about $57,000. Finally, Nadler Financial Group Inc. bought a new position in shares of NIO in the 3rd quarter valued at about $35,000. Institutional investors and hedge funds own 48.55% of the company's stock.

About NIO

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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