NIO (NYSE:NIO) Shares Down 3.4% - Here's What Happened

Nio Inc. (NYSE:NIO) saw its shares fall by 3.4% on Thursday. The stock traded as low as $4.16 during the day and closed at $4.14, which is a decline from the previous close of $4.28. During the trading session, about 7,480,180 shares changed hands, which is significantly lower at 82% from the average daily volume of approximately 40,742,898 shares.

Wall Street Analyst Commentary

Recent analysis from various financial institutions has affected NIO's stock rating. Macquarie downgraded NIO's rating from "outperform" to "neutral" and adjusted their price target from $6.60 to $4.80 in a note on November 20. Additionally, Goldman Sachs downgraded NIO from "neutral" to "sell," revising their target price from $4.80 to $3.90 on November 25. On a more positive note, Daiwa America upgraded NIO to a "strong-buy" rating back on September 30. Meanwhile, HSBC changed their rating from "buy" to "hold" on January 7, with another downgrade from “strong-buy” to “hold” on the same day. Currently, two analysts recommend selling the stock, while nine suggest holding it, and there are two buy ratings along with one strong buy. According to MarketBeat, NIO holds an average rating of "Hold" with a target price of $5.71.

Current Company Metrics

NIO has a current ratio of 1.04 and a quick ratio of 0.93 indicating its liquidity status. The company's debt-to-equity ratio stands at 0.98. The stock's 50-day moving average is at $4.48, while the 200-day moving average is at $4.78. Presently, NIO's market capitalization is approximately $7.36 billion, with a P/E ratio assessed at -2.83 and a beta of 1.70.

Institutional Investment Activity

A number of hedge funds have been adjusting their positions in NIO stock. For instance, Blue Trust Inc. increased its stake by an impressive 138.5% during the fourth quarter, acquiring 3,607 additional shares, bringing its total to 6,212 shares worth about $27,000. Allspring Global Investments Holdings LLC made a new investment in NIO during the third quarter, estimated at $32,000. Similarly, U.S. Capital Wealth Advisors LLC acquired shares valued at approximately $53,000 in the same quarter. Perigon Wealth Management LLC also increased their ownership by 24.1% in the fourth quarter, now holding 14,769 shares valued at around $61,000 after buying an extra 2,867 shares. Lastly, AE Wealth Management LLC initiated a new stake valued at about $75,000. Currently, 48.55% of NIO's stock is owned by institutional investors and hedge funds.

Company Overview

NIO Inc. is engaged in designing, manufacturing, and selling electric vehicles in China. In addition, the company produces e-powertrains, battery packs, and other components. NIO also manages racing activities, technology development, and sales support services, while providing battery charging solutions and other value-added services.

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