NIO (NYSE:NIO) Stock Price Down 3.2% - Here's Why

Key Points

• NIO shares fell 3.2% to approximately $3.47 in mid-day trading, with volume 29% below the stock’s average session volume.
• Analyst sentiment is mixed: NIO has an average rating of “Hold” and an average price target of $5.87, following rating and target-price reductions from Zacks Research and JPMorgan.
• The company reported $4.73 billion in quarterly revenue and breakeven EPS, but continues to face weak profitability, including a negative 111.37% return on equity and a negative 3.95% net margin.

Shares of NIO Inc. (NYSE:NIO - Get Free Report) dropped 3.2% during mid-day trading on Monday. The company traded as low as $3.43 and last traded at $3.4650. 26,316,509 shares were traded during mid-day trading, a decline of 29% from the average session volume of 37,149,035 shares. The stock had previously closed at $3.58.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. Zacks Research cut shares of NIO from a "strong-buy" rating to a "hold" rating in a report on Wednesday, September 2nd. The Goldman Sachs Group reissued a "buy" rating and set a $6.10 target price on shares of NIO in a research note on Friday, September 4th. Weiss Ratings reissued a "sell (e+)" rating on shares of NIO in a research note on Wednesday, July 29th. JPMorgan Chase & Co. cut shares of NIO from an "overweight" rating to a "neutral" rating and decreased their target price for the stock from $7.00 to $4.50 in a research report on Wednesday, September 2nd. Finally, Citigroup restated a "buy" rating on shares of NIO in a research note on Tuesday, September 1st. Six investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, NIO has an average rating of "Hold" and an average price target of $5.87.

NIO Stock Down 3.2%

The company has a debt-to-equity ratio of 2.11, a quick ratio of 0.89 and a current ratio of 1.02. The firm has a 50 day simple moving average of $4.01 and a two-hundred day simple moving average of $5.01. The stock has a market cap of $8.60 billion, a P/E ratio of -12.83 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 company 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%. Equities research analysts predict that NIO Inc. will post -0.13 earnings per share for the current year.

Hedge Funds Weigh In On NIO

Several large investors have recently bought and sold shares of NIO. QRG Capital Management Inc. raised its stake in shares of NIO by 24.2% in the 2nd quarter. QRG Capital Management Inc. now owns 37,156 shares of the company's stock worth $188,000 after buying an additional 7,246 shares in the last quarter. Wellington Altus USA Inc. acquired a new stake in shares of NIO in the second quarter valued at $35,000. Engineers Gate Manager LP boosted its stake in NIO by 2.4% during the second quarter. Engineers Gate Manager LP now owns 152,990 shares of the company's stock valued at $774,000 after buying an additional 3,537 shares in the last quarter. NewEdge Advisors LLC boosted its stake in NIO by 2,045.0% during the second quarter. NewEdge Advisors LLC now owns 11,261 shares of the company's stock valued at $57,000 after buying an additional 10,736 shares in the last quarter. Finally, Nykredit A S bought a new position in NIO during the second quarter valued at about $964,000. Institutional investors and hedge funds 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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