Morgan Stanley Bought 10 Million Shares of NIO Stock in Q1


  • Morgan Stanley (MS) bought 10.11 million shares of Nio (NIO) during Q1.
  • That brings the investment bank’s stake to 28.21 million shares.
  • Other top buyers of NIO stock include Bank of America (BAC) and Davidson Kempner Capital Management.
NIO stock - Morgan Stanley Bought 10 Million Shares of NIO Stock in Q1

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With the May 13 13F first-quarter deadline behind us, the general public now has access to the equity and options positions of institutional investors as of the end of March. During the quarter, Morgan Stanley (NYSE:MS) was the largest buyer of Nio (NYSE:NIO) stock.

It hasn’t been a pleasant 2024 for the Chinese electric vehicle (EV) maker, with its shares experiencing an over 35% decline. This has been attributed to steep competitive pressure, EV price wars and a falling Chinese housing market that has reduced the appetite for luxury vehicles.

However, Morgan Stanley’s Q1 13F activity hints that the investment bank may believe that the bottom is near. The firm disclosed purchasing 10.11 million shares, increasing its existing stake by a significant 55.86% to 28.21 million shares.

NIO Stock: Morgan Stanley Adds 10.11 Million Shares

It’s worth noting that Morgan Stanley’s allocation to NIO stock is still just 0.01% due to its holdings of thousands of other stocks. In other words, while the firm owns nearly 30 million shares of NIO, a plunge to $0 would mean nothing to it.

While Morgan Stanley increased its stake, institutional investors, in aggregate, had different ideas. A total of 453 13F filers disclosed a stake in the company, down from 486 filers quarter-over-quarter. These filers own a total of 327.61 million shares, down by 21.15% compared to Q4. This metric was skewed by Baillie Gifford, who reported selling 95.73 million shares.

Hedge funds, a subset of institutional investors, also appeared bearish. Their exposure to Nio fell by 22.05% to 46.71 million shares from 59.92 million shares.

Bank of America (NYSE:BAC) was the second-largest buyer of Nio during the quarter, picking up 4.69 million shares. Davidson Kempner Capital Management was third, initiating a position of four million shares. Nio makes up less than 0.01% of Bank of America’s 13F portfolio and 0.31% of Davidson Kempner’s portfolio.

Excluding CYVN Investments, which is a related party to Nio, E Fund Management is the 13F filer with the largest portfolio allocation to Nio at 3.13%. During the quarter, the firm sold off 215,880 shares, bringing its stake to 1.06 million shares.

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 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.

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