NIO (NYSE:NIO) Shares Gap Down - Should You Sell?

Nio Inc - (NYSE:NIO - Get Free Report) shares gapped down prior to trading on Wednesday . The stock had previously closed at $3.62, but opened at $3.45. NIO shares last traded at $3.52, with a volume of 6,900,684 shares trading hands.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on NIO shares. HSBC lowered NIO from a "buy" rating to a "hold" rating in a research note on Tuesday, January 7th. Citigroup decreased their price target on shares of NIO from $8.90 to $8.10 and set a "buy" rating on the stock in a research note on Monday, March 24th. Mizuho cut their price objective on shares of NIO from $4.20 to $3.50 and set a "neutral" rating for the company in a research note on Thursday, April 10th. JPMorgan Chase & Co. cut shares of NIO from an "overweight" rating to a "neutral" rating and decreased their target price for the stock from $7.00 to $4.70 in a research report on Tuesday, February 4th. Finally, Hsbc Global Res lowered shares of NIO from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, January 7th. One investment analyst has rated the stock with a sell rating, eight have assigned a hold rating, one has given a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $5.05.

NIO Trading Up 0.1 %

The company has a debt-to-equity ratio of 0.98, a quick ratio of 0.93 and a current ratio of 1.04. The stock has a market capitalization of $7.36 billion, a P/E ratio of -2.33 and a beta of 1.74. The stock has a 50-day moving average price of $4.17 and a two-hundred day moving average price of $4.57.

NIO (NYSE:NIO - Get Free Report) last posted its earnings results on Friday, March 21st. The company reported ($0.47) earnings per share for the quarter, missing analysts' consensus estimates of ($0.33) by ($0.14). The firm had revenue of $2.70 billion for the quarter, compared to analysts' expectations of $20.19 billion. NIO had a negative return on equity of 113.83% and a negative net margin of 33.41%. The firm's revenue was up 15.2% on a year-over-year basis. During the same quarter last year, the company posted ($2.81) EPS. On average, research analysts forecast that Nio Inc - will post -1.43 EPS for the current fiscal year.

Institutional Trading of NIO

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. SG Americas Securities LLC increased its stake in shares of NIO by 83.3% in the first quarter. SG Americas Securities LLC now owns 2,109,761 shares of the company's stock worth $8,038,000 after purchasing an additional 958,750 shares in the last quarter. Trexquant Investment LP purchased a new position in shares of NIO in the fourth quarter valued at about $3,305,000. Raymond James Financial Inc. bought a new stake in NIO during the 4th quarter valued at approximately $1,776,000. XY Capital Ltd purchased a new position in NIO in the 4th quarter worth approximately $1,544,000. Finally, AI Squared Management Ltd bought a new position in NIO in the 4th quarter worth approximately $1,491,000. Hedge funds and other institutional investors own 48.55% of the company's stock.

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.