Investors Buy High Volume of NIO Call Options (NYSE:NIO)

NIO Inc. (NYSE:NIO) was the target of some unusual options trading on Friday. Stock traders purchased 238,070 call options on the stock. This represents an increase of 52% compared to the average daily volume of 157,035 call options.

Hedge Funds Weigh In On NIO

Hedge funds and other institutional investors have recently modified their holdings of the business. PNC Financial Services Group Inc. raised its holdings in shares of NIO by 26.1% during the 4th quarter. PNC Financial Services Group Inc. now owns 54,432 shares of the company’s stock worth $278,000 after buying an additional 11,259 shares in the last quarter. HighTower Advisors LLC grew its position in NIO by 134.6% in the fourth quarter. HighTower Advisors LLC now owns 123,002 shares of the company’s stock valued at $627,000 after acquiring an additional 70,571 shares during the last quarter. Cascade Financial Partners LLC bought a new position in NIO in the fourth quarter valued at about $61,000. Abacus Wealth Partners LLC acquired a new position in NIO during the fourth quarter worth about $270,000. Finally, May Hill Capital LLC bought a new position in shares of NIO in the fourth quarter worth about $82,000. Institutional investors own 48.55% of the company’s stock.

NIO Price Performance

Shares of NYSE:NIO opened at $5.05 on Friday. The firm has a 50 day moving average of $4.87 and a 200-day moving average of $5.76. NIO has a 12 month low of $3.02 and a 12 month high of $8.02. 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 stock has a market capitalization of $10.54 billion, a PE ratio of -3.48 and a beta of 1.10.

Wall Street Analyst Weigh In

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

Key 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

About NIO

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.