Nio Inc. (NYSE: NIO) saw its stock climb 4.6% during mid-day trading on Wednesday, reaching a high of $4.41 before settling at $4.42. Despite the uptick, trading volume was significantly lower, with 14.07 million shares exchanged—a 74% drop compared to the daily average of 54.4 million shares.
Wall Street Analysts Lower Price Targets on NIO
While NIO shares gained in the latest session, Wall Street remains cautious. Several major analysts downgraded the stock in recent months, reflecting ongoing concerns over the company’s performance:
- HSBC Global Research: Downgraded from Strong Buy to Hold (Jan 7)
- Goldman Sachs: Downgraded from Neutral to Sell with a price target cut from $4.80 to $3.90 (Nov 25)
- Macquarie: Downgraded from Outperform to Neutral with a price target drop from $6.60 to $4.80 (Nov 20)
- JPMorgan Chase & Co.: Downgraded from Overweight to Neutral with a price target cut from $7.00 to $4.70 (Feb 4)
Overall, the stock has received two Sell ratings, eight Hold ratings, one Buy rating, and one Strong Buy rating. According to MarketBeat, NIO holds an average analyst rating of Hold with a consensus price target of $5.30—reflecting 19.9% upside from the last traded price.
NIO Stock Performance & Financial Metrics
- Market Cap: $9.30 billion
- P/E Ratio: -2.95 (Negative earnings signal continued losses)
- Beta: 1.81 (Indicates higher volatility than the broader market)
- Debt-to-Equity Ratio: 0.98 (Moderate leverage)
- Quick Ratio: 0.93 (Near-term liquidity concerns)
- Current Ratio: 1.04 (Slightly above water on short-term obligations)
NIO’s 50-day moving average stands at $4.33, while its 200-day moving average is $4.79—suggesting the stock is currently trading below longer-term trends.
Institutional Investors Adjust Positions
Despite the downgrades, institutional investors and hedge funds remain actively involved in NIO, adjusting their stakes in recent quarters:
- FMR LLC: Increased position by 5,388.5%, now holding 5.39 million shares worth $36.03 million
- Trexquant Investment LP: Acquired a new stake worth $3.31 million
- Point72 Hong Kong Ltd: Added a fresh position worth $4.88 million
- SG Americas Securities LLC: Increased stake by 104.8%, now holding 1.15 million shares worth $5.02 million
- Quadrature Capital Ltd: Grew its position by 32.3%, now holding 2.21 million shares valued at $14.76 million
In total, institutional investors own 48.55% of NIO’s outstanding shares, indicating a significant level of professional interest in the stock despite recent volatility.
