Saad Ullah
NIO (NYSE:NIO) stock price fell 6.1% on Thursday, trading as low as $4.16, with significant trading volume declines. Analysts have mixed ratings, with recent target price adjustments.
NIO Stock Price Declines by 6.1%
NIO Inc. (NYSE:NIO) experienced a notable 6.1% drop in its stock price on Thursday. The stock traded as low as $4.16, eventually closing at $4.17. This marked a significant departure from its previous close of $4.44. Trading volume also saw a sharp decline, with approximately 32,151,981 shares exchanging hands by mid-day, representing a 39% drop from the average daily volume of 52,912,273 shares.
Several equity analysts have recently shared their perspectives on NIO. Bank of America raised its target price for NIO shares from $5.90 to $6.00, maintaining a "neutral" rating. JPMorgan Chase & Co. upgraded NIO from "underweight" to "neutral," adjusting their target price from $4.80 to $5.40. Additionally, Macquarie began coverage of NIO, issuing a "neutral" rating with a $5.00 price target. On the contrary, Citigroup lowered its price target from $10.40 to $8.50 while keeping a "buy" rating. Overall, MarketBeat.com data shows that NIO has an average rating of "Hold" with an average target price of $7.55, based on ratings from one sell, eight hold, and two buy ratings.
NIO's Market Performance
The decline in NIO's stock price has impacted its market cap, now standing at $6.98 billion. The company's price-to-earnings ratio is -2.37, and it has a beta of 1.86. NIO's fifty-day simple moving average is $4.64, with a 200-day simple moving average of $5.09. Financially, the company maintains a debt-to-equity ratio of 0.55, a quick ratio of 1.03, and a current ratio of 1.15.
NIO recently reported its quarterly earnings data on June 6th, showing an EPS of ($0.36) for the quarter, falling short of analysts' consensus estimate of ($0.31). The company's revenue for the quarter was $1.37 billion, missing the expected $1.48 billion. NIO's financial struggles are highlighted by a negative return on equity of 111.91% and a negative net margin of 39.38%. Analysts predict that NIO will post an EPS of -1.41 for the current year.
Conclusion
Institutional investors have shown varying degrees of interest in NIO recently. Ridgewood Investments LLC and Bfsg LLC both purchased new stakes in the second quarter and fourth quarter, valued at $25,000 and $33,000, respectively. Rakuten Securities Inc. and Newbridge Financial Services Group Inc. also acquired new stakes, with the latter increasing its holdings by 272.3% in the first quarter, now owning 9,400 shares worth $42,000.
Principal Securities Inc. made a new investment in NIO during the fourth quarter, also valued at $42,000. Currently, 48.55% of NIO's stock is owned by institutional investors and hedge funds.
Saad Ullah
