NIO (NYSE:NIO) Stock Price Down 2.4% - Time to Sell?

Key Points

• NIO shares fell 2.4% to $3.415 in Friday trading, below both the 50-day moving average of $3.92 and the 200-day moving average of $4.95, while trading volume was 29% below average.
• Analyst sentiment is mixed but leans cautious: JPMorgan, Freedom Broker and RBC downgraded the stock, while Goldman Sachs maintained a “buy” rating. NIO has a consensus “Hold” rating and an average price target of $5.87.
• NIO remains unprofitable, reporting a negative net margin of 3.95% and negative return on equity of 111.37%; analysts expect a full-year loss of $0.13 per share. Institutional investors own 48.55% of the company, with several funds recently increasing their positions.

NIO Inc. (NYSE:NIO - Get Free Report)'s share price traded down 2.4% on Friday. The company traded as low as $3.37 and last traded at $3.4150. Approximately 26,243,492 shares traded hands during mid-day trading, a decline of 29% from the average daily volume of 37,084,180 shares. The stock had previously closed at $3.50.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on NIO. JPMorgan Chase & Co. cut shares of NIO from an "overweight" rating to a "neutral" rating and lowered their target price for the company from $7.00 to $4.50 in a report on Wednesday, September 2nd. Freedom Broker lowered NIO from a "strong-buy" rating to a "hold" rating in a report on Wednesday, September 2nd. Royal Bank Of Canada cut NIO to a "sector perform" rating in a research report on Thursday, September 3rd. The Goldman Sachs Group reiterated a "buy" rating and set a $6.10 price objective on shares of NIO in a research note on Friday, September 4th. Finally, Weiss Ratings reissued a "sell (e+)" rating on shares of NIO in a report on Wednesday, July 29th. Six investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, NIO presently has a consensus rating of "Hold" and an average price target of $5.87.

NIO Stock Performance

The business's fifty day moving average price is $3.92 and its 200-day moving average price is $4.95. 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 stock has a market capitalization of $8.48 billion, a PE ratio of -12.65 and a beta of 0.92.

NIO (NYSE:NIO - Get Free Report) last issued its quarterly earnings data on Saturday, August 15th. The company reported $0.00 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, equities research analysts expect that NIO Inc. will post -0.13 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. V Square Quantitative Management LLC raised its stake in shares of NIO by 17.4% during the first quarter. V Square Quantitative Management LLC now owns 13,707 shares of the company's stock valued at $83,000 after acquiring an additional 2,027 shares in the last quarter. Engineers Gate Manager LP boosted its holdings in shares of NIO by 2.4% in the second quarter. Engineers Gate Manager LP now owns 152,990 shares of the company's stock valued at $774,000 after purchasing an additional 3,537 shares during the period. Van ECK Associates Corp boosted its holdings in shares of NIO by 0.8% in the second quarter. Van ECK Associates Corp now owns 492,784 shares of the company's stock valued at $2,493,000 after purchasing an additional 4,002 shares during the period. EverSource Wealth Advisors LLC boosted its holdings in shares of NIO by 120.7% in the first quarter. EverSource Wealth Advisors LLC now owns 8,015 shares of the company's stock valued at $48,000 after purchasing an additional 4,383 shares during the period. Finally, Focus Partners Advisor Solutions LLC grew its stake in NIO by 17.5% in the second quarter. Focus Partners Advisor Solutions LLC now owns 29,605 shares of the company's stock worth $150,000 after purchasing an additional 4,406 shares in the last quarter. 48.55% of the stock is currently owned by hedge funds and other institutional investors.

About NIO

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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