Shares of NIO Inc. (NYSE:NIO – Get Free Report) rose 1.3% during mid-day trading on Wednesday. The stock traded as high as $3.47 and last traded at $3.4450. 26,626,599 shares traded hands during trading, a decline of 29% from the average daily volume of 37,426,121 shares. The stock had previously closed at $3.40.
NIO News Summary
Here are the key news stories impacting NIO this week:
- Positive Sentiment: NIO agreed to sell a 30% stake in NIO Power to a Geely subsidiary for Yiyi Power and RMB640 million in cash. The partnership should expand utilization of NIO’s battery-swap and charging network across Geely-affiliated electric-vehicle brands, potentially improving infrastructure economics over time. What Does NIO Gain From Selling 30% Of NIO Power?
- Positive Sentiment: CEO William Li said cooperation could reduce duplicated battery-swap networks and help automakers operate the infrastructure more efficiently, while the companies continue competing for vehicle customers. Wider third-party access could increase network volume and support long-term returns on NIO’s infrastructure investment. NIO Stock Slips Despite Geely Deal
- Neutral Sentiment: NIO reported 107,658 second-quarter deliveries, RMB32.1 billion in revenue and an 18.5% vehicle margin. However, it still posted a GAAP net loss of RMB528 million, leaving investors focused on whether the partnership can improve profitability ahead of third-quarter results.
- Negative Sentiment: Investors interpreted the stake sale as potential dilution of NIO’s control and future upside from NIO Power, offsetting the strategic benefits of the deal. Concerns about the value assigned to the unit and the company’s ability to monetize its charging assets contributed to the selloff. NIO Stock Hits 52-Week Low: What’s Happening?
- Negative Sentiment: Demand momentum remains a concern: August deliveries rose 14.5% year over year to 35,836 vehicles, slowing sharply from July’s 71% growth. That deceleration, continuing losses and intense competition in China’s EV market have outweighed recent delivery gains. NIO Slides as Investors Weigh Battery-Swap Deal Against Demand Concerns
Analyst Upgrades and Downgrades
NIO has been the subject of a number of research analyst reports. Freedom Broker lowered shares of NIO from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, September 2nd. Sanford C. Bernstein dropped their price target on NIO from $6.00 to $5.00 and set a “market perform” rating on the stock in a research note on Wednesday, September 2nd. The Goldman Sachs Group restated a “buy” rating and issued a $6.10 price target on shares of NIO in a report on Friday, September 4th. Citigroup reaffirmed a “buy” rating on shares of NIO in a research report on Tuesday, September 1st. Finally, Royal Bank Of Canada lowered NIO to a “sector perform” rating in a research report on Thursday, September 3rd. Six investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $5.87.
NIO Stock Up 1.3%
The firm’s 50 day simple moving average is $4.21 and its 200-day simple moving average is $5.14. The company has a current ratio of 1.02, a quick ratio of 0.89 and a debt-to-equity ratio of 2.11. The stock has a market capitalization of $8.55 billion, a price-to-earnings ratio of -12.76 and a beta of 0.92.
NIO (NYSE:NIO – Get Free Report) last posted its quarterly earnings data on Saturday, August 15th. The company reported $0.00 EPS for the quarter. The company had revenue of $4.73 billion during the quarter. NIO had a negative net margin of 3.95% and a negative return on equity of 111.37%. Equities analysts expect that NIO Inc. will post -0.13 earnings per share for the current fiscal year.
Institutional Investors Weigh In On NIO
Institutional investors and hedge funds have recently made changes to their positions in the stock. V Square Quantitative Management LLC grew its stake in shares of NIO by 17.4% in the first quarter. V Square Quantitative Management LLC now owns 13,707 shares of the company’s stock valued at $83,000 after buying an additional 2,027 shares in the last quarter. WCG Wealth Advisors LLC raised its position in NIO by 6.2% during the fourth quarter. WCG Wealth Advisors LLC now owns 55,549 shares of the company’s stock worth $283,000 after acquiring an additional 3,249 shares in the last quarter. Engineers Gate Manager LP lifted its stake in NIO by 2.4% in the second quarter. Engineers Gate Manager LP now owns 152,990 shares of the company’s stock valued at $774,000 after acquiring an additional 3,537 shares during the last quarter. Van ECK Associates Corp lifted its stake in NIO by 0.8% in the second quarter. Van ECK Associates Corp now owns 492,784 shares of the company’s stock valued at $2,493,000 after acquiring an additional 4,002 shares during the last quarter. Finally, EverSource Wealth Advisors LLC grew its position in shares of NIO by 120.7% in the 1st quarter. EverSource Wealth Advisors LLC now owns 8,015 shares of the company’s stock valued at $48,000 after acquiring an additional 4,383 shares during the period. Institutional investors 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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