Review of Financial analysis: NIO Limited (NYSE:NIO) heads deeper into bear market after earnings

On 03-02-2k21 (Tuesday) Shareholders tracking shares of NIO Limited (NIO) belongs to Consumer Cyclical sector and Auto Manufacturers industry. NIO flaunted -9.55% to reach at $45.01 during previous trading session. NIO Inc. has a total market value of 80.03B at the time of writing – representing $1.21B outstanding shares. Turning to other widely-considered trading data, this company’s half yearly performance is observed at 150.30%.

Nio Inc. American depositary receipts headed deeper into a bear market on Tuesday, but Wall Street focused on the Chinese electric-car maker’s “impressive” hopes for its first-quarter sales.

Nio NIO, -10.02% late Monday reported a 133% jump in fourth-quarter revenue and a wider-than-expected loss. The ADRs traded as low as $44.82 on Tuesday and were recently off about 26% from their Feb. 9 record closing high of $62.84, putting them well into bear-market territory.

Nio shares are 5% in the red this year, but have gained 1,045% in the past 12 months, compared with advances of around 3.6% and 26% for the S&P 500 index SPX, -0.55% so far this year and in the last 12 months. Nio hit a 52-week low of $2.37 on March 23, 2020.

Edison Yu with Deutsche Bank highlighted Nio’s “impressive” first-quarter guidance, which called for the delivery of about 20,000 to 20,500 vehicles, an increase between 15% and 18% from the fourth quarter’s deliveries. It guided for revenue between $1.13 billion and $1.16 billion for the quarter.

The delivery expectations outline “a very real path to (more than 100,000) deliveries this year, he said.

“We believe this reflects growing awareness and appreciation of its aspirational brand and ecosystem, putting NIO on track to be a market leader in the China premium segment,” Yu said.

The goal of delivering 100,000 is “achievable,” he added.

Volume Evaluation

The China listed company saw a recent price trade of $45.01 and 73,266,972 shares have traded hands in the session. There are 114.17M shares which are traded as an average over the last three months period.

Many investors forget that one of the defining characteristics of the stock market is that it’s a market. Buyers and sellers help determine the price of each stock, and the more buyers and sellers a particular stock has interested in it, the more liquid the market will be. Liquidity can have a profound impact on just how violently stock prices can move in either direction, and the reasons have to do with the nature of the market in a stock’s shares.

Trading volume, or volume, is the number of shares or contracts that indicates the overall activity of a security or market for a given period. Trading volume is an important technical indicator an investor uses to confirm a trend or trend reversal. Volume gives an investor an idea of the price action of a security and whether they should buy or sell the security.

Performance Levels

Looking performance record on shares of NIO Limited (NIO) we observed that the stock has seen a move 1104.84% over the last 52-week trading period. The stock generated performance of -7.32% tracking last 3 months. Investors will be anxiously watching to see if things will turn around and the stock will start gaining or losing momentum over the next few months. If we look back year-to-date, the stock has performed 2.09%. Shares are at -1.82% over the previous week and -14.75% over the past month.

Analyst Views:

Fluctuating the focus to what the Wall Street analysts are projecting, we can see that the current consensus target price on shares is $55.06. Analysts often put in a lot of work to study stocks that they cover. Wall Street analysts have a consensus recommendation of 2.40on this stock. This number falls on a one to five scale where a 1 would be considered a strong buy and 5 means a strong sell, 2 shows Buy, 3 Hold, 4 reveals Sell recommendation.

Volatility Insights

Watching some historical volatility numbers on shares of NIO Limited (NIO) we can see that the 30 days volatility is presently 7.09%. The 7 days volatility is 10.86%. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period.

The company has a beta of 0. 1.00 indicates that its price is correlated with the market. Less than 1.00 shows less volatility than the market. Beta greater than 1.00 indicates that the security’s price is theoretically more volatile than the market.

The Average True Range (ATR) value reported at 4.11. The average true range (ATR) is a technical analysis indicator that measures volatility by decomposing the entire range of an asset price for that period. A stock experiencing a high level of volatility has a higher ATR, and a low volatility stock has a lower ATR. The ATR may be used by market technicians to enter and exit trades, and it is a useful tool to add to a trading system. It was created to allow traders to more accurately measure the daily volatility of an asset by using simple calculations. The indicator does not indicate the price direction; rather it is used primarily to measure volatility caused by gaps and limit up or down moves. The ATR is fairly simple to calculate and only needs historical price data.

Technical Considerations

NIO Limited (NIO) stock positioned 53.72% distance from the 200-day MA and stock price situated -17.44% away from the 50-day MA while located -18.78% off of the 20-day MA.

RSI value sited with reading of 54.55. Relative Strength Index (RSI) is an extremely useful and popular momentum oscillator. The RSI compares the magnitude of a stock’s recent gains to the magnitude of its recent losses and turns that information into a number that ranges from 0 to 100. It takes a single parameter, the number of time periods to use in the calculation. In his book, Wilder recommends using 14 periods.

Observing the Technical Indicators:

NIO Limited institutional ownership is held at 36.70% while insider ownership was 0.56%. As of now, NIO has a P/S, P/E and P/B values of 41.43, 0 and 48.31 respectively. Its P/Cash is valued at 23.43. The Company’s net profit margin for the 12 months at 0. Comparatively, the gazes have a Gross margin 3.80%.

Profitability ratios:

Looking into the profitability ratios of NIO stock, an investor will find its ROE, ROA, ROI standing at 231.30%, -32.10% and -505.80%, respectively.

Earnings per Share Details of NIO Limited:

The EPS of NIO is strolling at -1.02, measuring its EPS growth this year at 51.30%. As a result, the company has an EPS growth of -0.15% for the approaching year.

Given the importance of identifying companies that will ensure earnings per share at a tall rate, we later obsession to umpire how to identify which companies will achieve high amassing rates. One obvious showing off to identify high earnings per portion count together companies are to locate companies that have demonstrated such build up beyond the p.s. 5 to 10 years.

The payout ratio shows the proportion of earnings paid out as dividends to shareholders, typically expressed as a percentage of the company’s earnings. The payout ratio can also be expressed as dividends paid out as a proportion of cash flow. The payout ratio is also known as the dividend payout ratio. The Company’s payout ratio was 0 and Price to free cash flow remained $0.