Saad Ullah
NIO (NYSE:NIO) saw a 1.7% increase in mid-day trading, reaching $4.52 before settling at $4.44. Despite this, analysts have downgraded the stock, adjusting price targets amid shifting market conditions.
NIO (NIO) Stock Climbs Despite Analyst Downgrades
Shares of NIO (NYSE:NIO) rose by 1.7% on Wednesday, reaching an intraday high of $4.52 before closing at $4.44. Trading volume saw a significant drop, with approximately 18.42 million shares exchanged, marking a 57% decline from the average daily volume of 43.33 million. The stock had previously closed at $4.36.
Analyst Rating Impact NIO (NIO) Stock
Several equity research firms recently revised their outlook on NIO. Goldman Sachs downgraded the stock from "neutral" to "sell," cutting its target price from $4.80 to $3.90. Similarly, JPMorgan Chase & Co. lowered its rating from "overweight" to "neutral," reducing its price objective from $7.00 to $4.70.
Other firms followed suit—HSBC Global Research downgraded NIO from a "strong-buy" to a "hold" in early January, while Macquarie shifted its rating from "outperform" to "neutral," revising its price target from $6.60 to $4.80. Despite the adjustments, NIO maintains a consensus "hold" rating, with an average price target of $5.38, according to MarketBeat.
NIO (NIO) Stock Performance and Key Metrics
NIO’s stock is currently trading above its 50-day moving average of $4.35 but below its 200-day moving average of $4.77. The company holds a market capitalization of $9.11 billion, with a price-to-earnings ratio of -2.89 and a beta of 1.69.
Financially, NIO has a current ratio of 1.04 and a quick ratio of 0.93, indicating its ability to cover short-term obligations. The company’s debt-to-equity ratio stands at 0.98, reflecting its leveraged position in the EV sector.
Hedge Funds and Institutional Investors Adjust Positions in NIO (NIO)
Hedge funds and institutional investors have recently made adjustments to their NIO holdings. Vident Advisory LLC increased its stake by 60.6%, now owning 53,937 shares worth $235,000. Meanwhile, Vienna Asset Management LLC and Laird Norton Wetherby Trust Company LLC entered new positions, valued at $100,000 and $93,000, respectively.
Additionally, Laird Norton Wetherby Wealth Management LLC boosted its holdings by 15.1%, now owning 66,534 shares valued at $290,000. J. Goldman & Co LP also acquired a new stake in NIO, investing approximately $541,000. Institutional investors and hedge funds collectively hold 48.55% of the company’s stock.
Conclusion
While NIO’s stock has shown short-term gains, the recent downgrades and lowered price targets indicate caution among analysts. Investors will closely watch upcoming financial reports and market trends to gauge the stock’s future trajectory.
Saad Ullah
