Sign InSummary
As of July 17, 2023, NIO Inc. is categorized as a 'Hold' based on its mixed financials and strong market consensus, with the stock expected to experience slight price volatility in the short term but potentially continue its uptrend in the upcoming week due to a recent significant investment and bullish momentum indicated by the moving averages.
Company Overview
NIO Inc. is an electric vehicles manufacturer based in China, currently being traded on the NYSE under the ticker NIO.
Current Market Performance
On July 17, 2023, NIO closed at $10.56, marking a marginal increase of 0.02 (0.19%) from its previous close. The company's day range spread between a low of $10.21 and a high of $10.63. Over the year, the company's stock demonstrated a wider range of $7 to $22.74.
NIO maintains a sizable market capitalization standing at $17.82 billion, with a respectable daily trading volume of 27.66 million shares, slightly below their average volume of 55.67 million shares.
Technical Analysis
The stock appears to be on the higher end of its momentum, exhibited by an RSI14 reading of 72 – an indicator signaling overbought conditions. The moving averages paint a mixed picture of the stock's performance, with the 200 Day Moving Average at $10.22125 showing long term stability, while the 50 Day Moving Average at $8.719 suggests recent bullish activity. The MACD (3-month) standing at 0.684779 also reiterates this recent upward momentum in price.
Fundamental Analysis
Fundamentally, the company exhibits a negative EPS of -$1.45, and hence a negative PE ratio of -7.28. The number of outstanding shares for NIO is 1.69 billion. While the negative EPS is a concern from an earnings perspective, the Discounted Cash Flow (DCF) exhibits a positive picture at $22.70 per share, suggesting potential underpricing of the stock.
Market Consensus
Market consensus gives a wide target range for the stock, between $13 and $83, with the average consensus at $35.15 and median at $31.3.
Recent News
Relevant news includes NIO's concern regarding its access to the US market, which has raised alarms among stakeholders, although it is not certain how this would affect the stock price, it indicates the company's active ambitions for expansion. More recently, NIO confirmed a sizeable investment of $738.5 million from CYVN Investments, an affiliate owned by Abu Dhabi's government. This investment could provide NIO with financial strength and stability, which in turn could boost investor confidence.
Stock price prediction
Considering the technical and fundamental analysis, and recent news, NIO shares might experience slight price volatility in the short term. For the next trading day, it can be expected to hover around the last closing price, with minor fluctuations. In the upcoming week, the stock might continue this uptrend influenced by the recent significant investment news and the bullish momentum indicated by the moving averages.
Evaluation
While NIO's financials reflect some issues, the positive DCF and strong market consensus provide optimism. Technically, the stock's momentum is high, which might result in some correction in the near term. However, the recent investment gives the company a financial cushion that might drive growth. Therefore, based on these mixed observations, NIO Inc. is categorized as a 'Hold'. However, these assessments need to be considered along with the investor's individual portfolio strategy and risk tolerance.
