NIO (NYSE:NIO) Stock Price Down 3% on Disappointing Earnings

Shares of Nio Inc – (NYSE:NIO) fell 3% during mid-day trading on Monday following a dissappointing earnings announcement. The stock traded as low as $4.34 and last traded at $4.37. 21,446,121 shares were traded during trading, a decline of 61% from the average session volume of 55,179,905 shares. The stock had previously closed at $4.50.

The company reported ($0.47) EPS for the quarter, missing analysts’ consensus estimates 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 firm had revenue of $2.70 billion during the quarter, compared to analysts’ expectations of $20.19 billion. During the same quarter in the prior year, the company earned ($2.81) EPS. NIO’s quarterly revenue was up 15.2% on a year-over-year basis.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on NIO. Hsbc Global Res cut shares of NIO from a “strong-buy” rating to a “hold” rating in a report on Tuesday, January 7th. Mizuho reduced their price objective on NIO from $5.00 to $4.20 and set a “neutral” rating for the company in a research note on Monday. Citigroup decreased their price objective on NIO from $8.90 to $8.10 and set a “buy” rating for the company in a report on Monday. HSBC lowered NIO from a “buy” rating to a “hold” rating in a report on Tuesday, January 7th. Finally, The Goldman Sachs Group downgraded NIO from a “neutral” rating to a “sell” rating and decreased their price target for the company from $4.80 to $3.90 in a report on Monday, November 25th. Two investment analysts have rated the stock with a sell rating, seven have given a hold rating, one has given a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, NIO presently has an average rating of “Hold” and an average target price of $5.00.

Institutional Trading of NIO

Institutional investors have recently bought and sold shares of the business. FMR LLC lifted its position in shares of NIO by 5,388.5% during the 3rd quarter. FMR LLC now owns 5,394,895 shares of the company’s stock valued at $36,038,000 after buying an additional 5,296,601 shares in the last quarter. Trexquant Investment LP purchased a new position in NIO during the fourth quarter valued at $3,305,000. Point72 Hong Kong Ltd acquired a new stake in shares of NIO in the third quarter valued at about $4,879,000. SG Americas Securities LLC increased its stake in shares of NIO by 104.8% during the fourth quarter. SG Americas Securities LLC now owns 1,151,011 shares of the company’s stock worth $5,018,000 after purchasing an additional 589,082 shares in the last quarter. Finally, Quadrature Capital Ltd increased its stake in shares of NIO by 32.3% during the third quarter. Quadrature Capital Ltd now owns 2,209,020 shares of the company’s stock worth $14,756,000 after purchasing an additional 538,907 shares in the last quarter. 48.55% of the stock is owned by institutional investors and hedge funds.

NIO Stock Performance

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 stock has a market cap of $9.15 billion, a price-to-earnings ratio of -2.90 and a beta of 1.81. The firm’s 50-day moving average is $4.43 and its two-hundred day moving average is $4.87.

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.