NIO (NYSE:NIO) Stock Declines 3% After Earnings Report

Nio Inc. (NYSE:NIO) saw its shares decrease by 3% on Monday, following a disappointing earnings report. The stock price fell as low as $4.34 before closing at $4.37. In midday trading, about 21,446,121 shares exchanged hands, representing a 61% drop from its average daily volume of 55,179,905 shares. The previous day, the stock had closed at $4.50.

The company's earnings report indicated a loss of $0.47 per share for the quarter, missing analysts' average forecast of a loss of $0.33 by $0.14. NIO generated revenue of $2.70 billion, significantly lower than expected revenue of $20.19 billion. Additionally, the company reported a negative net margin of 33.41% and a negative return on equity of 113.83%. However, NIO did see a year-over-year revenue increase of 15.2%, compared to the same quarter last year when they reported a loss of $2.81 per share.

Analyst Ratings and Changes

NIO has been the focus of numerous recent analyst reviews. On February 4th, JPMorgan Chase & Co. downgraded NIO from an "overweight" to a "neutral" rating and lowered the price target from $7.00 to $4.70. Goldman Sachs also downgraded the stock from "neutral" to "sell", setting a new price target of $3.90, down from $4.80. Citigroup adjusted their target price from $8.90 to $8.10 while maintaining a "buy" rating for the company. HSBC further downgraded NIO from a "strong buy" to a "hold" on January 7th. Presently, within the analyst community, two analysts give the stock a sell rating, seven maintain hold ratings, one rates it a buy, and one has a strong buy rating. Overall, the average rating is "Hold" with a target price of $5.00, according to data from MarketBeat.com.

Institutional Investor Movements

Recent activity among hedge funds highlights an interest in NIO. Blue Trust Inc. increased its holdings in the company by 138.5% during the fourth quarter, now owning 6,212 shares valued at approximately $27,000 following the acquisition of 3,607 additional shares. Similarly, Jones Financial Companies Lllp boosted their NIO holdings by 131.8%, owning 7,619 shares valued at about $33,000 after adding 4,332 shares. Other institutional investors, including Callan Family Office LLC and Trilogy Capital Inc., also acquired new stakes in NIO during the same period, each valuing their new acquisitions around $44,000 to $45,000. Currently, institutional investors hold approximately 48.55% of NIO's stock.

Current Stock Performance

The stock is trading below its 50-day moving average of $4.43 and its 200-day moving average of $4.87. Financial ratios for NIO reveal a quick ratio of 0.93, a current ratio of 1.04, and a debt-to-equity ratio of 0.98. The company has a market capitalization of $9.11 billion, with a negative price-to-earnings (PE) ratio of -2.89 and a beta of 1.81.

About NIO Inc.

Founded in China, NIO Inc. designs, manufactures, and sells electric vehicles. Beyond vehicles, NIO is also involved in the production of e-powertrains, battery packs, and other components, along with offering racing management, technology development, sales, and after-sales services. The company provides power solutions for charging needs and additional services to enhance customer experience.

NIO, stocks, earnings