Nio (NYSE:NIO) stock is in the green today despite the submission of a filing that revealed a major sale from a major shareholder.
As of March 29, Scottish investment firm Baillie Gifford owned 18.91 million shares of NIO stock, equivalent to a 0.98% ownership stake. The firm owned 114.92 million shares, equivalent to a 5.97% ownership stake, as of Dec. 29, meaning that it cut its stake by a significant 83.54%.
Based on combined 13F, 13D and 13G filings, Nio is now Baillie’s 125th-largest equity holding. It was its 30th-largest equity holding as of Dec. 31.
This is a massive blow to the Chinese electric vehicle (EV) company, as Baillie has been a prominent supporter of Nio for several years. According to WhaleWisdom, the firm first bought shares during the third quarter of 2018, which is right when Nio debuted its initial public offering (IPO). Baillie has an average holding period of five years for stocks in its 13F portfolio.
NIO Stock: Baillie Gifford Sells 84% of Its Stake
Abu Dhabi’s CYVN Investments remains the largest shareholder of Nio after picking up 294 millions shares priced at $7.50 per share during Q4. The investment was worth $2.2 billion and increased CYVN’s ownership stake to 20.1%.
CEO William Li is also a significant shareholder of the company with a 10.5% ownership stake comprised of 30.46 million Class A shares and 148.50 million Class C shares.
Baillie’s sale comes amid rising EV competition and geopolitical tensions that haven’t helped Nio toward its goal of profitability. Last week, the company cut its Q1 delivery guidance to 30,000 vehicles from between 31,000 and 33,000 vehicles, or 32,000 vehicles at the midpoint.
On April 1, Nio announced that it had delivered 30,053 vehicles during Q1. March deliveries tallied in at 11,866 vehicles, signaling a year-over-year (YOY) rise of 14.3%. During Q2, Nio will begin deliveries of its 2024 ES7, ET7 and ET5 models.
Wall Street analysts remain upbeat about the company. Nio carries an average price target of $8.18 among 26 analysts with coverage. Citi has the highest price target at $19.20, while Barclays has the lowest at $4.
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.
