NIO Inc ADR (NYSE: NIO)’s stock price has decreased by -3.64 compared to its previous closing price of 4.67. However, the company has seen a -10.00% decrease in its stock price over the last five trading sessions. Seeking Alpha reported 2024-03-31 that NIO Inc. lowers its delivery forecast for 1Q-24 due to soft demand in the Chinese market. Despite the challenges, I believe NIO’s stock is undervalued and investors are overreacting to the forecast. NIO’s gross profit is improving, and the company’s valuation is favorable compared to competitors.
Is It Worth Investing in NIO Inc ADR (NYSE: NIO) Right Now?
The stock has a 36-month beta value of 1.93. Opinions on the stock are mixed, with 11 analysts rating it as a “buy,” 9 as “overweight,” 12 as “hold,” and 1 as “sell.”
The public float for NIO is 1.55B, and at present, short sellers hold a 10.99% of that float. On April 01, 2024, the average trading volume of NIO was 59.26M shares.
NIO’s Market Performance
The stock of NIO Inc ADR (NIO) has seen a -10.00% decrease in the past week, with a -17.13% drop in the past month, and a -50.55% fall in the past quarter. The volatility ratio for the week is 4.53%, and the volatility levels for the past 30 days are at 5.57% for NIO. The simple moving average for the past 20 days is -17.53% for NIO’s stock, with a -46.82% simple moving average for the past 200 days.
Analysts’ Opinion of NIO
Many brokerage firms have already submitted their reports for NIO stocks, with Mizuho repeating the rating for NIO by listing it as a “Neutral.” The predicted price for NIO in the upcoming period, according to Mizuho is $5.50 based on the research report published on March 25, 2024 of the current year 2024.
CLSA, on the other hand, stated in their research note that they expect to see NIO reach a price target of $6. The rating they have provided for NIO stocks is “Outperform” according to the report published on March 06th, 2024.
JP Morgan gave a rating of “Underweight” to NIO, setting the target price at $5 in the report published on February 23rd of the current year.
NIO Trading at -21.35% from the 50-Day Moving Average
After a stumble in the market that brought NIO to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -72.19% of loss for the given period.
Volatility was left at 5.57%, however, over the last 30 days, the volatility rate increased by 4.53%, as shares sank -21.74% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -28.57% lower at present.
During the last 5 trading sessions, NIO fell by -10.00%, which changed the moving average for the period of 200-days by -46.43% in comparison to the 20-day moving average, which settled at $5.39. In addition, NIO Inc ADR saw -50.39% in overturn over a single year, with a tendency to cut further losses.
Stock Fundamentals for NIO
Current profitability levels for the company are sitting at:
- -0.42 for the present operating margin
- 0.04 for the gross margin
The net margin for NIO Inc ADR stands at -0.39. The total capital return value is set at -0.48. Equity return is now at value -84.90, with -19.64 for asset returns.
Based on NIO Inc ADR (NIO), the company’s capital structure generated 0.67 points at debt to capital in total, while cash flow to debt ratio is standing at -0.12. The debt to equity ratio resting at 2.05. The interest coverage ratio of the stock is -73.36.
Currently, EBITDA for the company is -14.19 billion with net debt to EBITDA at -0.39. When we switch over and look at the enterprise to sales, we see a ratio of 1.07. The receivables turnover for the company is 7.46for trailing twelve months and the total asset turnover is 0.53. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.22.
Conclusion
To sum up, NIO Inc ADR (NIO) has seen a bad performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
