NIO (NYSE:NIO) Trading Up 7.4% – Still a Buy?

NIO Inc. (NYSE:NIO) traded up 7.4% during mid-day trading on Friday . The stock traded as high as $5.22 and last traded at $5.05. 90,724,947 shares traded hands during trading, an increase of 85% from the average session volume of 48,995,988 shares. The stock had previously closed at $4.70.

More NIO News

Here are the key news stories impacting NIO this week:

• Positive Sentiment: NIO issued a profit alert saying it expects an adjusted operating profit (non‑GAAP) of approximately RMB700M–RMB1,200M for Q4 2025, driven by higher sales, a favorable product mix and cost cuts — a clear catalyst for the rally. NIO Profit Alert (GlobeNewswire)
• Positive Sentiment: Multiple media outlets amplified the profit news (coverage includes Benzinga and Blockonomi), increasing visibility and momentum as traders and momentum funds chased the headline. What’s Going On With Nio Stock? (Benzinga)
• Positive Sentiment: Unusually large options activity: ~238,070 call options traded (≈+52% vs. typical), indicating short‑term bullish bets and speculative positioning that can amplify upside. (internal trade data)
• Neutral Sentiment: NIO also disclosed an expected GAAP operating profit range (approx. RMB200M–RMB700M) and emphasized the figures are preliminary and unaudited — useful directional info but not final results. NIO Profit Alert (GlobeNewswire)
• Neutral Sentiment: Institutional activity and analyst coverage have ramped up; several firms recently added positions or updated targets (median six‑month target shown around $7), which supports longer‑term investor interest. QuiverQuant summary
• Negative Sentiment: Caveats: the profit alert is based on preliminary, unaudited numbers and uses non‑GAAP figures (excludes share‑based comp). Sustainability of profitability is unproven — NIO still has a history of large net losses and a relatively high debt/equity level, so upside could reverse on final audited results or if margins slip. Can Nio Stock Beat the Market? (The Motley Fool)
• Negative Sentiment: Market and sector risks remain — weakening EV subsidies and stiff competition in China could pressure volumes and margins if momentum fades. Recent volatility shows the stock can swing on sentiment shifts. Zacks note on recent volatility

Analyst Ratings Changes

Several equities analysts recently issued reports on the company. UBS Group cut NIO from a “buy” rating to a “hold” rating in a research note on Tuesday, November 25th. Weiss Ratings restated a “sell (d-)” rating on shares of NIO in a research report on Monday, December 29th. Macquarie Infrastructure raised shares of NIO from a “neutral” rating to an “outperform” rating and set a $6.10 price target for the company in a report on Thursday, January 15th. Barclays increased their price objective on shares of NIO from $3.00 to $4.00 and gave the stock an “underweight” rating in a research note on Friday, November 28th. Finally, Citigroup cut their target price on shares of NIO from $8.60 to $6.90 and set a “buy” rating on the stock in a report on Wednesday, November 26th. Four equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, NIO has an average rating of “Hold” and a consensus target price of $6.83.

NIO Stock Performance

The company’s 50-day moving average is $4.88 and its two-hundred day moving average is $5.76. The stock has a market capitalization of $10.54 billion, a P/E ratio of -3.48 and a beta of 1.10. The company has a current ratio of 0.94, a quick ratio of 0.83 and a debt-to-equity ratio of 2.36.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in NIO. Atlantic Union Bankshares Corp increased its holdings in shares of NIO by 98.3% during the fourth quarter. Atlantic Union Bankshares Corp now owns 5,950 shares of the company’s stock valued at $30,000 after purchasing an additional 2,950 shares during the period. Farther Finance Advisors LLC grew its position in NIO by 148.3% in the 3rd quarter. Farther Finance Advisors LLC now owns 4,817 shares of the company’s stock valued at $37,000 after buying an additional 2,877 shares in the last quarter. Hedeker Wealth LLC acquired a new position in NIO during the 2nd quarter valued at about $43,000. Allworth Financial LP increased its stake in NIO by 183.5% during the 3rd quarter. Allworth Financial LP now owns 6,596 shares of the company’s stock valued at $50,000 after buying an additional 4,269 shares during the period. Finally, Sandbox Financial Partners LLC bought a new stake in shares of NIO during the 4th quarter worth about $51,000. Institutional investors and hedge funds own 48.55% of the company’s stock.

NIO Company Profile

NIO Inc is a pioneer in the premium electric vehicle (EV) segment, dedicated to the design, development and manufacture of smart, high-performance EVs. Established in November 2014 and headquartered in Shanghai, China, the company focuses on integrating cutting-edge electric propulsion, advanced connectivity and autonomous driving technologies into its automotive platforms. NIO’s vision centers on creating a holistic user experience that extends beyond the vehicle itself, encompassing energy services and digital solutions.

The company’s product lineup includes flagship SUVs and sedans such as the ES8, ES6, EC6, ET7 and ET5, each engineered to deliver strong performance, long range and a suite of intelligent driver-assistance features.