NIO (NYSE:NIO) Trading Down 4.6% Following Weak Earnings

Nio Inc – (NYSE:NIO) traded down 4.6% during trading on Friday following a weaker than expected earnings announcement. The company traded as low as $4.36 and last traded at $4.49. 45,166,065 shares were traded during mid-day trading, a decline of 18% from the average session volume of 55,087,727 shares. The stock had previously closed at $4.71.

The company reported ($0.47) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.33) by ($0.14). NIO had a negative net margin of 33.41% and a negative return on equity of 113.83%. The business had revenue of $2.70 billion during the quarter, compared to the consensus estimate of $20.19 billion. During the same quarter in the previous year, the firm posted ($2.81) EPS. The company’s revenue for the quarter was up 15.2% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on NIO shares. JPMorgan Chase & Co. downgraded NIO from an “overweight” rating to a “neutral” rating and cut their price objective for the company from $7.00 to $4.70 in a research report on Tuesday, February 4th. HSBC downgraded NIO from a “buy” rating to a “hold” rating in a research report on Tuesday, January 7th. Hsbc Global Res downgraded NIO from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, January 7th. Finally, The Goldman Sachs Group cut NIO from a “neutral” rating to a “sell” rating and lowered their target price for the company from $4.80 to $3.90 in a research note on Monday, November 25th. Two investment analysts have rated the stock with a sell rating, seven have assigned a hold rating, one has issued a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $5.03.

Institutional Investors Weigh In On NIO

A number of institutional investors have recently made changes to their positions in NIO. Principal Financial Group Inc. grew its stake in shares of NIO by 140.2% during the third quarter. Principal Financial Group Inc. now owns 75,100 shares of the company’s stock worth $502,000 after purchasing an additional 43,839 shares during the period. Avior Wealth Management LLC grew its stake in shares of NIO by 106.1% during the third quarter. Avior Wealth Management LLC now owns 14,588 shares of the company’s stock worth $97,000 after purchasing an additional 7,510 shares during the period. Advisors Asset Management Inc. grew its stake in shares of NIO by 71.6% during the third quarter. Advisors Asset Management Inc. now owns 82,179 shares of the company’s stock worth $549,000 after purchasing an additional 34,299 shares during the period. DRW Securities LLC acquired a new stake in shares of NIO during the third quarter worth $140,000. Finally, FMR LLC grew its stake in shares of NIO by 5,388.5% during the third quarter. FMR LLC now owns 5,394,895 shares of the company’s stock worth $36,038,000 after purchasing an additional 5,296,601 shares during the period. 48.55% of the stock is owned by institutional investors and hedge funds.

NIO Trading Down 4.4 %

The company has a debt-to-equity ratio of 0.98, a current ratio of 1.04 and a quick ratio of 0.93. The business has a 50 day moving average of $4.43 and a 200 day moving average of $4.87. The firm has a market capitalization of $9.40 billion, a price-to-earnings ratio of -2.98 and a beta of 1.81.

NIO Company Profile

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.