NIO (NYSE:NIO) Shares Down 4.2% – Should You Sell?

NIO Inc. (NYSE:NIO)’s stock price dropped 4.2% during mid-day trading on Wednesday . The company traded as low as $5.73 and last traded at $5.7550. Approximately 28,936,298 shares traded hands during trading, a decline of 33% from the average daily volume of 43,113,590 shares. The stock had previously closed at $6.01.

Analyst Ratings Changes

Several research firms recently weighed in on NIO. Nomura upgraded shares of NIO from a “neutral” rating to a “buy” rating and set a $6.60 price target on the stock in a report on Wednesday, March 11th. Sanford C. Bernstein restated a “market perform” rating and set a $6.00 price target on shares of NIO in a research report on Friday, May 22nd. Dbs Bank upgraded NIO from a “hold” rating to a “moderate buy” rating in a research report on Monday, March 16th. HSBC raised NIO from a “hold” rating to a “buy” rating and boosted their price target for the stock from $4.80 to $6.80 in a research report on Friday, March 13th. Finally, Bank of America restated a “neutral” rating and issued a $6.80 price objective on shares of NIO in a report on Thursday, May 21st. Seven analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $6.70.

NIO Stock Performance

The firm has a market capitalization of $12.35 billion, a PE ratio of -9.77 and a beta of 0.92. The company has a current ratio of 1.01, a quick ratio of 0.90 and a debt-to-equity ratio of 1.94. The business’s 50 day simple moving average is $6.05 and its two-hundred day simple moving average is $5.42.

NIO (NYSE:NIO) last announced its earnings results on Saturday, February 14th. The company reported $0.04 earnings per share for the quarter. The business had revenue of $4.95 billion during the quarter. NIO had a negative net margin of 8.78% and a negative return on equity of 318.96%. Research analysts expect that NIO Inc. will post -0.2 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of NIO. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in NIO by 3,966.7% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 5,316,291 shares of the company’s stock valued at $20,255,000 after purchasing an additional 5,185,565 shares in the last quarter. Franklin Resources Inc. lifted its holdings in NIO by 50.9% in the 2nd quarter. Franklin Resources Inc. now owns 17,707 shares of the company’s stock worth $61,000 after purchasing an additional 5,974 shares in the last quarter. Invesco Ltd. lifted its holdings in NIO by 22.7% in the 2nd quarter. Invesco Ltd. now owns 2,738,308 shares of the company’s stock worth $9,392,000 after purchasing an additional 506,618 shares in the last quarter. First Trust Advisors LP lifted its holdings in NIO by 67.4% in the 2nd quarter. First Trust Advisors LP now owns 73,280 shares of the company’s stock worth $251,000 after purchasing an additional 29,501 shares in the last quarter. Finally, AXA S.A. purchased a new position in NIO in the 2nd quarter worth approximately $64,000. Hedge funds and other institutional investors own 48.55% of the company’s stock.

About NIO

NIO Inc is a pioneer in the premium electric vehicle (EV) segment, dedicated to the design, development and manufacture of smart, high-performance EVs. Established in November 2014 and headquartered in Shanghai, China, the company focuses on integrating cutting-edge electric propulsion, advanced connectivity and autonomous driving technologies into its automotive platforms. NIO’s vision centers on creating a holistic user experience that extends beyond the vehicle itself, encompassing energy services and digital solutions.

The company’s product lineup includes flagship SUVs and sedans such as the ES8, ES6, EC6, ET7 and ET5, each engineered to deliver strong performance, long range and a suite of intelligent driver-assistance features.