NIO (NYSE:NIO) Stock Falls 3.8% - Time to Sell?

Key Points

• NIO shares fell 3.8% to about $3.41 in mid-day trading, with trading volume slightly above its daily average.
• Analyst sentiment has weakened: JPMorgan cut its rating to neutral and lowered its price target to $4.50, while the consensus rating is Hold with an average target of $5.87.
• NIO remains unprofitable, reporting a negative net margin of 3.95% and negative return on equity of 111.37%, although institutional investors own approximately 48.55% of the company.

NIO Inc. (NYSE:NIO - Get Free Report)'s stock price traded down 3.8% during mid-day trading on Thursday. The stock traded as low as $3.36 and last traded at $3.4050. 38,621,353 shares traded hands during mid-day trading, an increase of 4% from the average daily volume of 37,163,672 shares. The stock had previously closed at $3.54.

Analysts Set New Price Targets

Several equities research analysts have recently commented on the stock. Freedom Broker lowered shares of NIO from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, September 2nd. Weiss Ratings reissued a "sell (e+)" rating on shares of NIO in a report on Wednesday, July 29th. Zacks Research lowered shares of NIO from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, September 2nd. JPMorgan Chase & Co. cut shares of NIO from an "overweight" rating to a "neutral" rating and reduced their target price for the company from $7.00 to $4.50 in a report on Wednesday, September 2nd. Finally, Citigroup reiterated a "buy" rating on shares of NIO in a research report on Tuesday, September 1st. Six analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, NIO currently has an average rating of "Hold" and an average target price of $5.87.

NIO Stock Performance

The company has a market cap of $8.46 billion, a P/E ratio of -12.61 and a beta of 0.92. The business's 50 day simple moving average is $4.07 and its 200 day simple moving average is $5.04. 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 posted its quarterly earnings results on Saturday, August 15th. The company reported $0.00 earnings per share 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%. Sell-side analysts predict that NIO Inc. will post -0.13 earnings per share for the current fiscal year.

Institutional Investors Weigh In On NIO

A number of institutional investors have recently bought and sold shares of NIO. Renaissance Technologies LLC grew 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 in the last quarter. Bank of America Corp DE lifted its holdings in NIO by 99.0% in the 1st quarter. Bank of America Corp DE now owns 14,228,916 shares of the company's stock worth $85,800,000 after purchasing an additional 7,079,903 shares in the last quarter. SG Americas Securities LLC boosted its stake in NIO by 67.2% in the 1st quarter. SG Americas Securities LLC now owns 5,027,161 shares of the company's stock worth $30,314,000 after purchasing an additional 2,020,754 shares during the period. Assenagon Asset Management S.A. bought a new position in NIO in the 2nd quarter worth approximately $19,008,000. Finally, Hsbc Holdings PLC boosted its stake in NIO by 651.5% in the 2nd quarter. Hsbc Holdings PLC now owns 1,600,640 shares of the company's stock worth $8,051,000 after purchasing an additional 1,387,656 shares during the period. Hedge funds and other institutional investors own 48.55% of the company's stock.

NIO Company Profile

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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