NIO Limited [NYSE: NIO] closed the trading session at $56.27 on 01/15/21. The day’s price range saw the stock hit a low of $55.67, while the highest price level was $60.22. The company report on January 13, 2021 that NIO Inc. Prices Offering of US$1.3 Billion Convertible Senior Notes.
NIO Inc. (NYSE: NIO) (“NIO” or the “Company”), a pioneer in China’s premium smart electric vehicle market, announced the pricing of US$650 million in aggregate principal amount of convertible senior notes due 2026 (the “2026 Notes”) and US$650 million in aggregate principal amount of convertible senior notes due 2027 (the “2027 Notes,” and, together with the 2026 Notes, the “Notes”) (the “Notes Offering”). The Notes have been offered to persons reasonably believed to be qualified institutional buyers in reliance on the exemption from registration provided by Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and certain persons in offshore transactions in reliance on Regulation S under the Securities Act. In addition, the Company has granted the initial purchasers in the Notes Offering a 30-day option to purchase up to an additional US$100 million in aggregate principal amount of the 2026 Notes and US$100 million in aggregate principal amount of the 2027 Notes. The Company plans to use the net proceeds from the Notes Offering mainly for general corporate purposes and to further strengthen its cash and balance sheet positions.
When issued, the Notes will be senior, unsecured obligations of NIO. The 2026 Notes will not bear interest, and the principal amount of the 2026 Notes will not accrete. The 2027 Notes will bear interest at a rate of 0.50% per year, payable semiannually in arrears on February 1 and August 1 of each year, beginning on August 1, 2021. The 2026 Notes will mature on February 1, 2026 and the 2027 Notes will mature on February 1, 2027, unless repurchased, redeemed or converted in accordance with their terms prior to such date. Prior to August 1, 2025, in the case of the 2026 Notes, and August 1, 2026, in the case of the 2027 Notes, the Notes will be convertible at the option of the holders only upon satisfaction of certain conditions and during certain periods. Holders may convert their Notes at their option at any time on or after August 1, 2025, in the case of the 2026 Notes, or August 1, 2026, in the case of the 2027 Notes, until the close of business on the second scheduled trading day immediately preceding the relevant maturity date. Upon conversion, the Company will pay or deliver to such converting holders, as the case may be, cash, the Company’s American Depositary Shares (“ADSs”), each currently representing one Class A ordinary shares of the Company, or a combination of cash and ADSs, at the Company’s election.
The stocks have a year to date performance of 15.45 percent and weekly performance of -4.50 percent. The stock has been moved at 407.39 percent over the last six months. The stock has performed 29.36 percent around the most recent 30 days and changed 100.46 percent over the most recent 3-months.
If compared to the average trading volume of 184.59M shares, NIO reached to a volume of 130796511 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to say about NIO Limited [NIO]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for NIO shares is $41.62 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on NIO stock is a recommendation set at 2.30. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Citigroup have made an estimate for NIO Limited shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on January 12, 2021. While these analysts kept the previous recommendation, JP Morgan raised their target price from $50 to $75. The new note on the price target was released on January 11, 2021, representing the official price target for NIO Limited stock. Previously, the target price had yet another raise from $59 to $70, while BofA Securities kept a Buy rating on NIO stock. On December 01, 2020, analysts increased their price target for NIO shares from 7.70 to 59.
The Average True Range (ATR) for NIO Limited is set at 3.92, with the Price to Sales ratio for NIO stock in the period of the last 12 months amounting to 42.36. The Price to Book ratio for the last quarter was 55.17, with the Price to Cash per share for the same quarter was set at 2.35.
NIO stock trade performance evaluation
NIO Limited [NIO] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -4.50. With this latest performance, NIO shares gained by 29.36% in over the last four-week period, additionally plugging by 407.39% over the last 6 months – not to mention a rise of 1187.64% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for NIO stock in for the last two-week period is set at 57.52, with the RSI for the last a single of trading hit 54.55, and the three-weeks RSI is set at 58.70 for NIO Limited [NIO]. The present Moving Average for the last 50 days of trading for this stock 48.46, while it was recorded at 60.81 for the last single week of trading, and 21.55 for the last 200 days.
NIO Limited [NIO]: An insightful look at the core fundamentals
Operating Margin for any stock indicates how profitable investing would be, and NIO Limited [NIO] shares currently have an operating margin of -141.59 and a Gross Margin at -21.98. NIO Limited’s Net Margin is presently recorded at -145.86.
Return on Total Capital for NIO is now -128.15, given the latest momentum, and Return on Invested Capital for the company is -215.78. Return on Equity for this stock declined to -3,612.71, with Return on Assets sitting at -68.28. Additionally, NIO Total Debt to Total Capital is recorded at 243.19, with Total Debt to Total Assets ending up at 73.37.
Receivables Turnover for the company is 3.25 with a Total Asset Turnover recorded at a value of 0.47.NIO Limited’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.30 and a Current Ratio set at 2.40.
Earnings per share (EPS) analysis for NIO Limited [NIO] stock
With the latest financial reports released by the company, NIO Limited posted -0.39/share EPS, while the average EPS was predicted by analysts to be reported at -0.26/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -50.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for NIO. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for NIO Limited go to -0.15%.
NIO Limited [NIO]: Insider Ownership positions
There are presently around $25,497 million, or 36.40% of NIO stock, in the hands of institutional investors. The top three institutional holders of NIO stocks are: BAILLIE GIFFORD & CO with ownership of 108,936,586, which is approximately 11.413% of the company’s market cap and around 0.56% of the total institutional ownership; BLACKROCK INC., holding 53,333,635 shares of the stock with an approximate value of $3.0 billion in NIO stocks shares; and VANGUARD GROUP INC, currently with $1.92 billion in NIO stock with ownership of nearly 19.083% of the company’s market capitalization.
Positions in NIO Limited stocks held by institutional investors increased at the end of March and at the time of the March reporting period, where 297 institutional holders increased their position in NIO Limited [NYSE:NIO] by around 119,817,467 shares. Additionally, 123 investors decreased positions by around 71,107,828 shares, while 16 investors held positions by with 262,185,058 shares. The mentioned changes placed institutional holdings at 453,110,353 shares, according to the latest SEC report filing. NIO stock had 165 new institutional investments in for a total of 43,296,383 shares, while 48 institutional investors sold positions of 21,736,126 shares during the same period.