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Asset Management One Co. Ltd. has sold 26.6% of its shares in Chinese EV manufacturer Nio Inc. during the fourth quarter of 2022, according to a filing with the US Securities and Exchange Commission. The institutional investor owned 246,370 shares in Nio, worth $2.46m, after the sale of 89,453 shares. Other institutional investors, including UMB Bank and Spire Wealth Management, have increased their holdings in the company in recent quarters. However, several research analysts have lowered their ratings on the company’s stock, with Morgan Stanley cutting its price objective from $16.10 to $12. NIO stock opened at $7.45 on 3 May, down 4.6%.
NIO faces challenges as China’s EV market heats up
EV Manufacturer Nio is facing challenges in a rapidly expanding electric vehicle (EV) market in China, where competition is increasing. In addition, the company is experiencing supply chain issues, leading to production slowdowns and lower delivery expectations. The global semiconductor shortage has also affected the production of EVs, and Nio is no exception. The company expects to deliver 21,000 to 22,000 vehicles in the first quarter of 2023, down from an earlier estimate of 23,500 vehicles. Despite these challenges, Nio’s revenue grew by 150.6% year-over-year to $1.37bn in the fourth quarter of 2022, and the company plans to expand globally, starting with Norway in 2023.
NIO Stock Analysis & Forecast
12 analysts gives NIO average analyst target price is projected to be USD 17.47 over the next 12 months. The average analyst rating for Nio Inc Class A ADR is Strong Buy, indicating positive sentiment among analysts. However, Stock Target Advisor’s analysis of NIO stock market performance is Bearish, based on 2 positive signals and 5 negative signals. As of the latest closing, Nio Inc Class A ADR’s stock price was USD 7.45, showing a decline of -5.70% over the past week, -29.12% over the past month, and -57.43% over the last year.