NIO (NYSE:NIO) Stock Price Down 2.3% - Here's Why

Key Points

• NIO shares fell 2.3% to $3.5850, trading below both the 50-day and 200-day moving averages, amid volume of roughly 35.9 million shares.
• Analyst sentiment is mixed but leans cautious: JPMorgan and Freedom Broker downgraded the stock, while Goldman Sachs maintained a buy rating. MarketBeat reports an overall “Hold” rating and an average price target of $6.21.
• NIO reported $4.73 billion in quarterly revenue and break-even EPS, but continues to face weak profitability, including a negative 111.37% return on equity and a projected full-year loss of $0.16 per share.

NIO Inc. (NYSE:NIO - Get Free Report)'s share price dropped 2.3% during trading on Tuesday . The stock traded as low as $3.55 and last traded at $3.5850. Approximately 35,897,514 shares changed hands during trading, a decline of 5% from the average session volume of 37,893,598 shares. The stock had previously closed at $3.67.

Analysts Set New Price Targets

A number of analysts have weighed in on the company. JPMorgan Chase & Co. cut NIO from an "overweight" rating to a "neutral" rating and lowered their price target for the company from $7.00 to $4.50 in a research report on Wednesday, September 2nd. Freedom Broker downgraded shares of NIO from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, September 2nd. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of NIO in a report on Wednesday, July 29th. The Goldman Sachs Group reissued a "buy" rating and set a $6.10 price target on shares of NIO in a report on Friday, September 4th. Finally, Royal Bank Of Canada lowered shares of NIO to a "sector perform" rating in a research report on Thursday, September 3rd. Six analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the company has an average rating of "Hold" and an average target price of $6.21.

NIO Trading Down 2.3%

The business has a 50 day simple moving average of $4.50 and a 200 day simple moving average of $5.25. The company has a debt-to-equity ratio of 2.11, a current ratio of 1.02 and a quick ratio of 0.89. The company has a market cap of $8.90 billion, a price-to-earnings ratio of -13.28 and a beta of 0.92.

NIO (NYSE:NIO - Get Free Report) last released its quarterly earnings results on Saturday, August 15th. The company reported $0.00 earnings per share (EPS) for the quarter. The business had revenue of $4.73 billion during the quarter. NIO had a negative return on equity of 111.37% and a negative net margin of 3.95%. As a group, equities analysts forecast that NIO Inc. will post -0.16 EPS for the current year.

Institutional Trading of NIO

Hedge funds have recently modified their holdings of the stock. Bank of America Corp DE boosted its holdings in NIO by 99.0% in 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 acquiring an additional 7,079,903 shares during the last quarter. Renaissance Technologies LLC increased its position in NIO by 70.2% in 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. Assenagon Asset Management S.A. bought a new stake in NIO during the 2nd quarter worth about $19,008,000. SG Americas Securities LLC lifted its position in NIO by 67.2% during the 1st 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 period. Finally, Hsbc Holdings PLC lifted its position in NIO by 651.5% during 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.

NIO Company Profile

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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