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

Shares of Nio Inc – (NYSE:NIO) gapped down before the market opened on Thursday . The stock had previously closed at $4.22, but opened at $3.90. NIO shares last traded at $3.99, with a volume of 70,831,958 shares.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on NIO shares. Citigroup cut their price objective on shares of NIO from $8.90 to $8.10 and set a “buy” rating on the stock in a report on Monday, March 24th. Mizuho cut their target price on shares of NIO from $5.00 to $4.20 and set a “neutral” rating on the stock in a report on Monday, March 24th. HSBC cut NIO from a “buy” rating to a “hold” rating in a research note on Tuesday, January 7th. Hsbc Global Res cut NIO from a “strong-buy” rating to a “hold” rating in a report on Tuesday, January 7th. Finally, JPMorgan Chase & Co. cut NIO from an “overweight” rating to a “neutral” rating and lowered their target price for the stock from $7.00 to $4.70 in a research note on Tuesday, February 4th. Two analysts have rated the stock with a sell rating, eight have issued a hold rating, one has assigned a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $5.00.

NIO Price Performance

The company has a 50 day moving average price of $4.43 and a 200 day moving average price of $4.84. The company has a current ratio of 1.04, a quick ratio of 0.93 and a debt-to-equity ratio of 0.98. The company has a market capitalization of $7.82 billion, a P/E ratio of -2.48 and a beta of 1.81.

NIO (NYSE:NIO) last posted its earnings results on Friday, March 21st. The company reported ($0.47) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.33) by ($0.14). The company had revenue of $2.70 billion for the quarter, compared to analyst estimates of $20.19 billion. NIO had a negative return on equity of 113.83% and a negative net margin of 33.41%. The business’s quarterly revenue was up 15.2% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($2.81) EPS. On average, equities analysts predict that Nio Inc – will post -1.43 EPS for the current fiscal year.

Institutional Investors Weigh In On NIO

Several institutional investors have recently made changes to their positions in NIO. FMR LLC raised its stake in NIO by 5,388.5% in the third quarter. FMR LLC now owns 5,394,895 shares of the company’s stock valued at $36,038,000 after purchasing an additional 5,296,601 shares in the last quarter. Flow Traders U.S. LLC acquired a new stake in NIO in the third quarter valued at about $141,000. Point72 Hong Kong Ltd bought a new position in NIO in the third quarter valued at about $4,879,000. Garden State Investment Advisory Services LLC bought a new position in shares of NIO in the third quarter worth about $377,000. Finally, Hilltop Holdings Inc. acquired a new position in NIO during the 3rd quarter worth approximately $130,000. 48.55% of the stock is currently owned by institutional investors.

About NIO

NIO Inc designs, manufactures, and sells electric vehicles in the People's Republic of China. The company is also involved in the manufacture of e-powertrain, battery packs, and components; and racing management, technology development, and sales and after-sales management activities. In addition, it offers power solutions for battery charging needs; and other value-added services.