SPECIAL REPORT The Top 7 Stocks for 2024

5 Investors Betting Big on NIO Stock

Advertisement

  • 13F filers owned 407.32 million shares of Nio (NIO) stock as of the third quarter, down about 15% compared to Q2.
  • Abu Dhabi’s CYVN Investments remains the largest shareholder of the company with ownership of 124.83 million shares.
  • Other shareholders include Tencent (TCEHY) and BlackRock (BLK)
NIO stock - 5 Investors Betting Big on NIO Stock

Source: Andy Feng / Shutterstock.com

It hasn’t exactly been a memorable year for shareholders of Nio (NYSE:NIO) stock, as shares of the Chinese electric vehicle (EV) company have shed about 18% year-to-date (YTD). This has been a result of price wars with competitors, the company’s unprofitability status and competition from other EV companies.

During October, the company delivered 16,074 vehicles, up by 59.8% year-over-year (YOY). That brought the EV firm’s total YTD deliveries to 126,067 vehicles, up by 36.3% YOY.

Earlier this month, Nio announced that it would lay off about 10% of its workforce, citing efficiency and cost-cutting objectives. The company also disclosed that it would delay or wind down projects that are not expected to contribute to financial performance in the next three years. “This is a tough but necessary decision against the fierce competition,” said Nio.

These layoffs have led to speculation that Nio could be experiencing issues that may eventually lead to it going out of business. Co-founder and President Qin Lihong sought to put an end to these rumors by providing this statement at the Guangzhou Auto Show:

“Nio will not go out of business, and there is absolutely no possibility of it going out of business. Please feel assured to experience and buy Nio’s cars.”

5 Investors Betting Big on NIO Stock

Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During Q3, 446 13F filers disclosed a stake in NIO stock, a decline of 15 filers from the prior quarter. In total, these filers own 407.32 million shares of Nio, marking a stark decline of 14.95% compared to the second quarter figure of 478.90 million shares. From these numbers, it doesn’t appear as if institutional interest in NIO stock picked up during Q3.

While institutional ownership decreased, the put/call ratio increased to 1.2 at the end of Q3, up from 0.9. That’s equivalent to 54.39 million puts and 45.41 million calls, implying a bearish options stance.

With that in mind, let’s take a look at Nio’s largest shareholders:

  1. CYVN Investments: 124.83 million shares. CYVN’s stake is accurate as of July 12, 2023.
  2. Tencent Holdings (OTCMKTS:TCEHY): 124.11 million shares. Tencent’s stake is accurate as of June 20, 2023.
  3. Baillie Gifford: 114.90 million shares. Baillie sold 4.55 million shares during Q3.
  4. BlackRock (NYSE:BLK): 64 million shares. BlackRock sold 2.78 million shares during Q3.
  5. State Street (NYSE:STT): 21.03 million shares. State Street sold 3.23 million shares during Q3.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.


Article printed from InvestorPlace Media, https://investorplace.com/2023/11/5-investors-betting-big-on-nio-stock/.

©2024 InvestorPlace Media, LLC