NIO (NYSE:NIO) Trading Down 1.5% - Here's What Happened

Key Points

• NIO shares fell 1.5% to about $3.665 in midday trading, with volume down 38% from the average daily level.
• Analyst sentiment is mixed but leans toward caution: NIO’s average rating is “Hold,” with an average price target of $5.87 after several firms lowered targets or downgraded the stock.
• NIO reported $4.73 billion in quarterly revenue and breakeven earnings per share, but continues to show weak profitability, including a negative net margin and return on equity; institutional investors own 48.55% of the stock.

NIO Inc. (NYSE:NIO - Get Free Report)'s stock price was down 1.5% during mid-day trading on Wednesday . The stock traded as low as $3.66 and last traded at $3.6650. Approximately 23,105,886 shares were traded during trading, a decline of 38% from the average daily volume of 37,514,445 shares. The stock had previously closed at $3.72.

Analysts Set New Price Targets

A number of equities research analysts recently commented on NIO shares. 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 report on Wednesday, September 2nd. JPMorgan Chase & Co. downgraded NIO from an "overweight" rating to a "neutral" rating and cut their target price for the stock from $7.00 to $4.50 in a research note on Wednesday, September 2nd. Zacks Research lowered 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 issued a $6.10 price target on shares of NIO in a research report on Friday, September 4th. Finally, Weiss Ratings reissued a "sell (e+)" rating on shares of NIO in a report on Wednesday, July 29th. Six equities research 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. Based on data from MarketBeat, NIO currently has an average rating of "Hold" and an average target price of $5.87.

NIO Stock Down 1.5%

The company has a market cap of $9.10 billion, a P/E ratio of -13.57 and a beta of 0.92. The stock has a 50-day moving average of $4.35 and a two-hundred day moving average of $5.20. The company has a debt-to-equity ratio of 2.11, a quick ratio of 0.89 and a current ratio of 1.02.

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Bank of America Corp DE increased its stake in shares of 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 acquiring an additional 7,079,903 shares in the last quarter. Renaissance Technologies LLC boosted its stake in 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 acquiring an additional 5,962,731 shares in the last quarter. Assenagon Asset Management S.A. purchased a new stake in NIO in the second quarter worth about $19,008,000. SG Americas Securities LLC grew its holdings in NIO by 67.2% in the first 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. Finally, Hsbc Holdings PLC increased its stake in shares of NIO by 651.5% during the second 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 in the last quarter. 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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