NIO Inc. (NYSE:NIO – Get Free Report)’s stock price traded down 5.2% on Tuesday. The stock traded as low as $3.38 and last traded at $3.4050. Approximately 58,628,658 shares traded hands during mid-day trading, an increase of 56% from the average daily volume of 37,477,387 shares. The stock had previously closed at $3.59.
More NIO News
Here are the key news stories impacting NIO this week:
- Positive Sentiment: Geely partnership expands NIO’s battery-swapping ecosystem. A Geely subsidiary will acquire a 30% stake in NIO Power using its Yiyi Power business and RMB640 million in cash, valuing NIO Power at approximately RMB16 billion. The companies also plan to make battery-swapping technology compatible with additional consumer and commercial vehicle models, potentially increasing utilization of NIO’s infrastructure. NIO Announces Definitive Agreements for Strategic Transaction With Geely
- Positive Sentiment: The transaction could support infrastructure funding and industry adoption. NIO has invested more than RMB20 billion in its power network, which included 4,126 battery-swap stations and 5,307 charging stations in China as of September 27. Geely’s participation may validate NIO’s technology and reduce duplication among competing networks. NIO Inks Battery-Swapping Deal With Geely
- Neutral Sentiment: Recent operating results show scale but not a full return to profitability. NIO reported 107,658 second-quarter deliveries, RMB32.1 billion in revenue, an 18.5% vehicle margin and a GAAP net loss of RMB528 million. August deliveries rose 14.5% year over year to 35,836, but that growth slowed sharply from July’s 71% increase, raising questions about delivery momentum in China’s competitive EV market. NIO Slides as Investors Weigh Battery-Swap Deal Against Demand Concerns
- Negative Sentiment: Investors are concerned about dilution and execution risk. Geely’s 30% ownership reduces NIO’s stake in a key business, while its interest could rise to 34% through an additional investment. The stake may also be adjusted based on operational performance, keeping attention on whether NIO Power can generate sufficient returns.
- Negative Sentiment: Demand and financial concerns continue to overshadow the strategic deal. NIO remains loss-making, with a negative net margin and elevated leverage, while intensifying competition and slower delivery growth could limit the near-term benefit of the partnership. The stock has consequently moved lower and reached a new 52-week low. NIO Stock Hits 52-Week Low
Analyst Ratings Changes
Several research firms recently weighed in on NIO. Sanford C. Bernstein reduced their price objective on shares of NIO from $6.00 to $5.00 and set a “market perform” rating for the company in a report on Wednesday, September 2nd. JPMorgan Chase & Co. downgraded shares of NIO from an “overweight” rating to a “neutral” rating and dropped their price target for the stock from $7.00 to $4.50 in a research report on Wednesday, September 2nd. Citigroup restated a “buy” rating on shares of NIO in a research report on Tuesday, September 1st. Zacks Research cut NIO from a “strong-buy” rating to a “hold” rating in a report on Wednesday, September 2nd. Finally, Freedom Broker cut NIO from a “strong-buy” rating to a “hold” rating in a report on Wednesday, September 2nd. Six analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $5.87.
NIO Stock Performance
The firm’s 50-day moving average price is $4.24 and its two-hundred day moving average price is $5.16. The company has a quick ratio of 0.89, a current ratio of 1.02 and a debt-to-equity ratio of 2.11. The firm has a market capitalization of $8.46 billion, a PE ratio of -12.61 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 firm 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%. As a group, research analysts predict that NIO Inc. will post -0.13 earnings per share for the current fiscal year.
Institutional Trading of NIO
Hedge funds have recently made changes to their positions in the stock. Bank of America Corp DE lifted its position in 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 buying an additional 7,079,903 shares in the last quarter. Hsbc Holdings PLC increased its stake in shares of NIO by 651.5% in the second quarter. Hsbc Holdings PLC now owns 1,600,640 shares of the company’s stock worth $8,051,000 after acquiring an additional 1,387,656 shares during the last quarter. Renaissance Technologies LLC increased its stake in shares of NIO by 70.2% in 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 during the last quarter. Assenagon Asset Management S.A. purchased a new stake in shares of NIO during the second quarter worth $19,008,000. Finally, ABC Arbitrage SA acquired a new stake in NIO during the first quarter valued at $4,043,000. 48.55% of the stock is owned by hedge funds and other 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.
Featured Stories
- Five stocks we like better than NIO
- CarMax Just Gave Investors a Better Reason to Believe in the Turnaround
- CoreWeave Comes With Risks: Analysts Split on What Matters Most
- Bottlenecking the Future: TSMC Prices Out the Competition
- Fervo Energy Hits Geothermal Milestone: Will It Matter For The Stock?
Receive News & Ratings for NIO Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for NIO and related companies with MarketBeat.com's FREE daily email newsletter.
