TLDR
- NIO’s stock price increased 9.9% in mid-day trading, reaching $4.90
- Analysts have mixed opinions with an average “Hold” rating and price target of $5.30
- NIO is increasing automation at its F2 factory in Hefei with robotic quality inspectors
- The company has a market cap of $9.89 billion with debt-to-equity ratio of 0.98
- Institutional investors have recently modified their holdings in the company
NIO Inc. shares jumped nearly 10% in recent trading as the Chinese electric vehicle manufacturer continues to advance its automation efforts at production facilities.
The company’s stock rose 9.9% during mid-day trading on Tuesday. Shares traded as high as $4.97 before settling at $4.90.
This represented a notable increase from the previous close of $4.46. Trading volume reached 50,873,836 shares, slightly below the average session volume of 54,351,028 shares.
The price movement comes as NIO expands automation capabilities at its F2 factory in Hefei, China. The company’s founder and CEO William Li announced the introduction of robotic quality inspectors in a recent Weibo post.
Li shared animated images showing robotic arms performing various inspection tasks. These include tool plugging, camera photography, equipment examination and removal processes.
NIO operates two factories in Hefei’s Anhui province. The F2 facility, located at NeoPark in Xinqiao, is the company’s newest plant.
The automation push extends beyond manufacturing lines. In June 2024, NIO’s co-founder and President Qin Lihong announced that a third plant is under construction.
NIO has also explored advanced manufacturing methods including humanoid robots. In 2023, UBTech Robotics introduced its Walker S humanoid robot for NIO’s production line.
The Walker S robot performs quality control tasks such as examining door locks, seat belts, and headlamp covers. It also affixes car emblems using real-time image capture and transmission technology.
More recently, China Star Market reported that Kuavo, a humanoid robot built by Leju Robotics and powered by Huawei’s HarmonyOS, was being tested at NIO’s facilities. The robot uses Pangu, a large artificial intelligence model.
Wall Street analysts maintain mixed opinions
Wall Street analysts maintain mixed opinions on NIO stock. The company currently has an average rating of “Hold” and a consensus price target of $5.30.
Several analysts have recently adjusted their ratings. HSBC downgraded NIO from a “strong-buy” to a “hold” rating in January.
JPMorgan Chase lowered shares from an “overweight” to a “neutral” rating in February. They reduced their target price from $7.00 to $4.70.
Goldman Sachs took a more bearish stance, downgrading NIO from “neutral” to “sell” in November. They decreased their price target from $4.80 to $3.90.
Overall, two analysts rate the stock as “sell,” eight as “hold,” one as “buy,” and one as “strong buy.”
NIO has a market capitalization of $9.89 billion. The company’s price-to-earnings ratio stands at -3.14 with a beta of 1.81.
The stock’s 50-day moving average price is $4.37, while the 200-day moving average is $4.82. NIO has a debt-to-equity ratio of 0.98, a quick ratio of 0.93, and a current ratio of 1.04.
Investors increased their positions
Institutional investors have recently modified their holdings in the company. FMR LLC grew its position by acquiring 5,394,895 shares valued at $36,038,000 in the third quarter.
Trexquant Investment LP invested $3,305,000 in the fourth quarter. SG Americas Securities increased its position by 104.8% in the fourth quarter, now holding 1,151,011 shares worth $5,018,000.
Quadrature Capital raised its holdings to 2,209,020 shares valued at $14,756,000 in the third quarter. Institutional investors and hedge funds currently own 48.55% of the stock.
NIO designs, manufactures, and sells electric vehicles in the People’s Republic of China. The company also manufactures e-powertrains, battery packs, and components.
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