Are NIO Limited (NIO) Shares Headed For A Pullback?

On Wednesday, shares of NIO Limited (NYSE:NIO) marked $26.50 per share versus a previous $21.62 closing price. With having a 22.57% gain, an insight into the fundamental values of NIO Limited, investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. NIO showed a rise of 559.20% within its YTD performance, with highs and lows between $1.36 – $22.59 during the period of 52 weeks, compared to the simple moving average of 212.86% in the period of the last 200 days.

JP Morgan equity researchers changed the status of NIO Limited (NYSE: NIO) shares from “Neutral” to a “Overweight” rating in the report published on October 14th, 2020. Other analysts, including Deutsche Bank, also published their reports on NIO shares. Deutsche Bank repeated the rating from the previous report, marking NIO under “Buy” rating, in the report published on September 8th, 2020. Additionally, NIO shares got another “Overweight” rating from Morgan Stanley, setting a target price of $20.50 on the company’s shares, according to the report published in August 26th, 2020. On the other hand, Goldman Downgrade the “Sell” rating for NIO shares, as published in the report on July 17th, 2020. Goldman seems to be going bullish on the price of NIO shares, based on the price prediction for NIO, indicating that the shares will jump to $7, giving the shares “Neutral” rating based on their report from June 24th, 2020. Another “Buy” rating came from Goldman.

NIO Limited (NIO) Analysis

The present dividend yield for NIO owners is set at 0, marking the return investors will get regardless of the company’s performance in the upcoming period. In addition, the growth of sales from quarter to quarter is recording 146.50%, hinting the company’s progress in the upcoming progress.

In order to gain a clear insight on the performance of NIO Limited (NIO) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of 141.40% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at 1.10 so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.

Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while NIO is currently recording an average of 103.48M in volumes. The volatility of the stock on monthly basis is set at 6.45%, while the weekly volatility levels are marked at 5.55%with 22.91% of gain in the last seven days. Additionally, long-term investors are predicting the target price of $17.02, indicating growth from the present price of $26.50, which can represent yet another valuable research and analysis points that can help you decide whether to invest in NIO or pass.

What to Look for When Analyzing NIO Limited Shares?

NIO Limited (NIO) is based in the China and it represents one of the well-known company operating with Consumer Cyclical sector. If you wish to compare NIO shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of for NIO Limited, while the value can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value -1.19 is supported by the yearly EPS growth of 51.30%.

Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 0.72%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts 38.50% of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.

Are Institutional Investors Increasing Stakes in NIO Shares?

It appears that more than several institutional investors and hedge funds decided to increase stakes in NIO in the recent period. That is how BlackRock Fund Advisors now has an increase position in NIO by 39.33% in the first quarter, owning 28.87 million shares of NIO stocks, with the value of $612.6 million after the purchase of an additional 8,149,430 shares during the last quarter. In the meanwhile, The Vanguard Group, Inc. also increased their stake in NIO shares changed 1.97% in the first quarter, which means that the company now owns 25.82 million shares of company, all valued at $547.99 million after the acquisition of additional 498,143 shares during the last quarter.

D. E. Shaw & Co. LP acquired a new position in NIO Limited during the first quarter, with the value of $403.91 million, and SSgA Funds Management, Inc. increased their stake in the company’s shares by 12.10% in the first quarter, now owning 1,759,569 shares valued at $346.01 million after the acquisition of the additional 16.31 million shares during the last quarter. In the end, Goldman Sachs & Co. LLC increased their position by — during the first quarter, now owning 12.4 million NIO shares, now holding the value of $263.2 million in NIO with the purchase of the additional 1,537,673 shares during the period of the last quarter. At the present, 38.50% of NIO shares are in the ownership of institutional investors.