NIO (NYSE:NIO) Trading Down 4.6% on Disappointing Earnings

Nio Inc – (NYSE:NIO) fell 4.6% during trading on Friday after the company announced weaker than expected quarterly earnings. The stock 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 for the quarter, missing the consensus estimate of ($0.33) by ($0.14). The company had revenue of $2.70 billion during the quarter, compared to analyst estimates of $20.19 billion. NIO had a negative net margin of 33.41% and a negative return on equity of 113.83%. NIO’s revenue was up 15.2% on a year-over-year basis. During the same period in the prior year, the firm earned ($2.81) earnings per share.

Analysts Set New Price Targets

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

Hedge Funds Weigh In On NIO

A number of institutional investors and hedge funds have recently modified their holdings of the business. Shufro Rose & Co. LLC bought a new position in NIO during the fourth quarter worth $65,000. Vident Advisory LLC raised its position in shares of NIO by 60.6% during the fourth quarter. Vident Advisory LLC now owns 53,937 shares of the company’s stock worth $235,000 after purchasing an additional 20,349 shares during the period. Vienna Asset Management LLC bought a new position in shares of NIO in the 4th quarter worth $100,000. Laird Norton Wetherby Trust Company LLC acquired a new stake in NIO in the 4th quarter valued at $93,000. Finally, Laird Norton Wetherby Wealth Management LLC increased its stake in NIO by 15.1% during the 4th quarter. Laird Norton Wetherby Wealth Management LLC now owns 66,534 shares of the company’s stock valued at $290,000 after purchasing an additional 8,746 shares in the last quarter. 48.55% of the stock is currently owned by institutional investors.

NIO Stock Performance

The stock has a market cap of $9.40 billion, a price-to-earnings ratio of -2.98 and a beta of 1.81. The company’s fifty day simple moving average is $4.43 and its two-hundred day simple moving average is $4.87. The company has a debt-to-equity ratio of 0.98, a current ratio of 1.04 and a quick ratio of 0.93.

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.