NIO (NYSE:NIO) Trading 7.4% Higher – Time to Buy?

NIO Inc. (NYSE:NIO)’s share price rose 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 changed hands during mid-day trading, an increase of 85% from the average session volume of 48,995,988 shares. The stock had previously closed at $4.70.

Key Headlines Impacting NIO

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

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the company. UBS Group downgraded NIO from a “buy” rating to a “hold” rating in a research note on Tuesday, November 25th. Weiss Ratings reiterated a “sell (d-)” rating on shares of NIO in a research report on Monday, December 29th. Macquarie Infrastructure raised NIO from a “neutral” rating to an “outperform” rating and set a $6.10 price objective for the company in a research note on Thursday, January 15th. Barclays lifted their target price on NIO from $3.00 to $4.00 and gave the stock an “underweight” rating in a report on Friday, November 28th. Finally, The Goldman Sachs Group reaffirmed a “neutral” rating and set a $7.00 target price on shares of NIO in a report on Thursday, October 30th. Four analysts have rated the stock with a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, NIO has an average rating of “Hold” and a consensus price target of $6.83.

NIO Trading Up 7.4%

The company’s 50-day moving average is $4.88 and its 200 day moving average is $5.76. The company has a current ratio of 0.94, a quick ratio of 0.83 and a debt-to-equity ratio of 2.36. The firm has a market cap of $10.54 billion, a PE ratio of -3.48 and a beta of 1.10.

Institutional Trading of NIO

Several hedge funds and other institutional investors have recently modified their holdings of the business. Gladstone Institutional Advisory LLC raised its position in NIO by 12.8% during the third quarter. Gladstone Institutional Advisory LLC now owns 13,231 shares of the company’s stock valued at $101,000 after buying an additional 1,500 shares during the period. MGO One Seven LLC grew its stake in NIO by 10.6% during the 3rd quarter. MGO One Seven LLC now owns 16,208 shares of the company’s stock valued at $124,000 after acquiring an additional 1,560 shares in the last quarter. Insigneo Advisory Services LLC grew its stake in NIO by 4.4% during the 3rd quarter. Insigneo Advisory Services LLC now owns 43,067 shares of the company’s stock valued at $328,000 after acquiring an additional 1,806 shares in the last quarter. Tidal Investments LLC lifted its position in shares of NIO by 0.9% in the second quarter. Tidal Investments LLC now owns 287,140 shares of the company’s stock worth $985,000 after purchasing an additional 2,433 shares in the last quarter. Finally, TD Waterhouse Canada Inc. boosted its holdings in shares of NIO by 11.6% during the fourth quarter. TD Waterhouse Canada Inc. now owns 24,884 shares of the company’s stock worth $127,000 after purchasing an additional 2,586 shares during the period. 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.