NIO (NYSE:NIO) Stock Price Up 1.3% – Should You Buy?

NIO Inc. (NYSE:NIO)’s stock price 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 mid-day trading, a decline of 29% from the average session volume of 37,426,121 shares. The stock had previously closed at $3.40.

Trending Headlines about NIO

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

Analysts Set New Price Targets

A number of equities analysts have weighed in on NIO shares. Sanford C. Bernstein lowered their price target on NIO from $6.00 to $5.00 and set a “market perform” rating on the stock in a research report on Wednesday, September 2nd. Weiss Ratings reiterated a “sell (e+)” rating on shares of NIO in a research note on Wednesday, July 29th. Citigroup reissued a “buy” rating on shares of NIO in a report on Tuesday, September 1st. Zacks Research cut NIO from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, September 2nd. Finally, JPMorgan Chase & Co. cut NIO from an “overweight” rating to a “neutral” rating and dropped their price target for the company from $7.00 to $4.50 in a research note on Wednesday, September 2nd. Six analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, NIO currently has a consensus rating of “Hold” and a consensus target price of $5.87.

NIO Stock Performance

The firm has a market cap of $8.55 billion, a price-to-earnings ratio of -12.76 and a beta of 0.92. 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’s 50 day moving average is $4.21 and its 200 day moving average is $5.14.

NIO (NYSE:NIO) last issued its quarterly earnings data on Saturday, August 15th. The company reported $0.00 earnings per share (EPS) for the quarter. NIO had a negative return on equity of 111.37% and a negative net margin of 3.95%.The company had revenue of $4.73 billion during the quarter. Analysts anticipate that NIO Inc. will post -0.13 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Persistent Asset Partners Ltd bought a new position in NIO during the 2nd quarter worth $34,000. Merkkuri Wealth Advisors LLC bought a new stake in shares of NIO in the first quarter valued at about $41,000. Global Retirement Partners LLC acquired a new position in shares of NIO in the second quarter valued at about $34,000. Wellington Altus USA Inc. bought a new position in NIO during the second quarter worth about $35,000. Finally, EverSource Wealth Advisors LLC increased its position in NIO by 120.7% during the first quarter. EverSource Wealth Advisors LLC now owns 8,015 shares of the company’s stock worth $48,000 after acquiring an additional 4,383 shares during the period. 48.55% of the stock is owned by institutional investors and hedge funds.

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.