An analyst sees good growth prospects for NIO Inc. (NIO)

NIO Inc. (NYSE: NIO) stock jumped 8.94% on Monday to $12.06 against a previous-day closing price of $11.07. With 63.74 million shares changed hands, the volume of the stock remained heavier than its average volume of 59.22 million shares. During the session, the Auto Manufacturers company that operates in wider Consumer Cyclical sector, reached to the highest price of $12.35 whereas the lowest price it dropped to was $11.15. The 52-week range on NIO shows that it touched its highest point at $28.99 and its lowest point at $8.38 during that stretch. It currently has a 1-year price target of $19.44. Beta for the stock currently stands at 1.86.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of NIO was up-trending over the past week, with a rise of 2.20%, but this was up by 8.75% over a month. Three-month performance surged to 9.94% while six-month performance fell -37.32%. The stock lost -58.60% in the past year, while it has gained 23.69% so far this year.

Float and Shares Shorts:

At present, 1.64 billion NIO shares are outstanding with a float of 1.52 billion shares on hand for trading. On Oct 13, 2022, short shares totaled 63.62 million, which was 3.81% higher than short shares on Sep 14, 2022. In addition to Mr. William Li as the firm’s Co-Founder, Chairman & CEO, Mr. Lihong Qin serves as its Co-Founder, Pres & Director.

Institutional Ownership:

Through their ownership of 37.19% of NIO’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 18.65% of NIO, in contrast to 15.51% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in NIO with 6.27% of the stake, Baillie Gifford & Co. holds 96,781,178 shares worth 96,781,178. A second-largest stockholder of NIO, BlackRock Fund Advisors, holds 40,663,213 shares, controlling over 2.63% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in NIO, holding 39,332,403 shares or 2.55% stake. With a 1.98% stake in NIO, the Vanguard International Growth Fun is the largest stakeholder. A total of 30,557,076 shares are owned by the mutual fund manager. The Scottish Mortgage Investment Trus, which owns about 1.46% of NIO stock, is the second-largest Mutual Fund holder. It holds 22,458,095 shares valued at 218.97 million. Vanguard Emerging Markets Stock I holds 1.18% of the stake in NIO, owning 18,228,403 shares worth 177.73 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for NIO since 40 analysts follow the stock currently. There are 26 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 7 believe that the stock is worth HOLDING, 7 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With NIO analysts setting a high price target of $192.06 and a low target of $55.42, the average target price over the next 12 months is $119.43. Based on these targets, NIO could surge 1492.54% to reach the target high and rise by 359.54% to reach the target low. Reaching the average price target will result in a growth of 890.3% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. NIO will report FY 2022 earnings on 03/22/2024. Analysts have provided yearly estimates in a range of -$2.91 being high and -$8.26 being low. For NIO, this leads to a yearly average estimate of -$6.60. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. NIO Inc. surprised analysts by -$0.12 when it reported -$0.29 EPS against a consensus estimate of -$0.17. The surprise factor in the prior quarter was -$0.02. Based on analyst estimates, the high estimate for the next quarter is -$0.19 and the low estimate is -$2.26. The average estimate for the next quarter is thus -$1.63.

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