NIO Inc. [NYSE: NIO] gained 5.37% on the last trading session, reaching $35.89 price per share at the time. The company report on May 24, 2021 that NIO Announces Renewal of Joint Manufacturing Arrangements.
NIO Inc. (“NIO” or the “Company”) (NYSE: NIO), a pioneer and a leading manufacturer of premium smart electric vehicles in China, announced that it has entered into manufacturing agreements with Jianghuai Automobile Group Co., Ltd., or JAC, and Jianglai Advanced Manufacturing Technology (Anhui) Co., Ltd., or Jianglai, regarding the joint manufacturing of NIO vehicles and related fee arrangements. JAC is a major state-owned automobile manufacturer in China that currently manufactures the NIO vehicles in delivery, including the ES8, ES6 and EC6, in the Hefei JAC-NIO manufacturing plant designed and constructed for NIO vehicles. Jianglai is a joint venture for operation management established by JAC and NIO where NIO holds 49% equity interests.
Pursuant to the joint manufacturing arrangement, from May 2021 to May 2024, JAC will continue to manufacture the ES8, ES6, EC6, ET7 and potentially other NIO models in the pipeline. In addition, JAC will expand its annual production capacity to 240,000 units (calculated based on 4,000 work hours per year) in order to meet the growing demand for NIO vehicles. NIO will be in charge of vehicle development and engineering, supply chain management, manufacturing techniques, and quality management and assurance. Jianglai will be responsible for parts assembly and operation management.
NIO Inc. represents 1.55 billion in outstanding shares, while the company has a total market value of $45.21 billion with the latest information. NIO stock price has been found in the range of $33.56 to $36.49.
If compared to the average trading volume of 96.05M shares, NIO reached a trading volume of 66881660 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about NIO Inc. [NIO]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for NIO shares is $53.81 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 2.20. 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.
CLSA have made an estimate for NIO Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on April 23, 2021. While these analysts kept the previous recommendation, Mizuho raised their target price to Buy. The new note on the price target was released on March 11, 2021, representing the official price target for NIO Inc. stock. Previously, the target price had yet another raise from $33 to $80, while Morgan Stanley kept a Overweight rating on NIO stock.
The Average True Range (ATR) for NIO Inc. is set at 2.09, with the Price to Sales ratio for NIO stock in the period of the last 12 months amounting to 12.72. The Price to Book ratio for the last quarter was 13.34, with the Price to Cash per share for the same quarter was set at 5.83.
Trading performance analysis for NIO stock
NIO Inc. [NIO] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 6.15. With this latest performance, NIO shares dropped by -12.63% in over the last four-week period, additionally sinking by -25.92% over the last 6 months – not to mention a rise of 997.55% 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 48.50, with the RSI for the last a single of trading hit 53.17, and the three-weeks RSI is set at 46.44 for NIO Inc. [NIO]. The present Moving Average for the last 50 days of trading for this stock 38.04, while it was recorded at 34.39 for the last single week of trading, and 38.10 for the last 200 days.
NIO Inc. [NIO]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and NIO Inc. [NIO] shares currently have an operating margin of -27.97 and a Gross Margin at +7.95. NIO Inc.’s Net Margin is presently recorded at -34.51.
Return on Total Capital for NIO is now -18.37, given the latest momentum, and Return on Invested Capital for the company is -29.08. Return on Equity for this stock declined to -50.02, with Return on Assets sitting at -15.56. When it comes to the capital structure of this company, NIO Inc. [NIO] has a Total Debt to Total Equity ratio set at 35.04. Additionally, NIO Total Debt to Total Capital is recorded at 25.95, with Total Debt to Total Assets ending up at 17.42. Long-Term Debt to Equity for the company is recorded at 25.80, with the Long-Term Debt to Total Capital now at 19.10.
Receivables Turnover for the company is 5.94 with a Total Asset Turnover recorded at a value of 0.45.NIO Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 3.00 and a Current Ratio set at 3.10.
NIO Inc. [NIO]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, NIO Inc. posted -0.18/share EPS, while the average EPS was predicted by analysts to be reported at -0.28/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 35.70%. 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 Inc. go to -0.15%.
An analysis of insider ownership at NIO Inc. [NIO]
There are presently around $16,629 million, or 38.60% of NIO stock, in the hands of institutional investors. The top three institutional holders of NIO stocks are: BAILLIE GIFFORD & CO with ownership of 92,019,761, which is approximately -14.724% of the company’s market cap and around 0.53% of the total institutional ownership; BLACKROCK INC., holding 62,612,159 shares of the stock with an approximate value of $2.25 billion in NIO stocks shares; and VANGUARD GROUP INC, currently with $1.61 billion in NIO stock with ownership of nearly 13.108% of the company’s market capitalization.
Positions in NIO Inc. stocks held by institutional investors increased at the end of April and at the time of the April reporting period, where 382 institutional holders increased their position in NIO Inc. [NYSE:NIO] by around 66,268,184 shares. Additionally, 239 investors decreased positions by around 75,337,572 shares, while 56 investors held positions by with 321,722,157 shares. The mentioned changes placed institutional holdings at 463,327,913 shares, according to the latest SEC report filing. NIO stock had 130 new institutional investments in for a total of 7,049,609 shares, while 105 institutional investors sold positions of 18,434,514 shares during the same period.