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NIO Charges Higher on Positive Delivery Update

The equity is testing support at its 20-day moving average today

Digital Content Manager
Feb 1, 2021 at 10:45 AM
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The shares of Nio Inc (NYSE:NIO) are up 1.1% at $56.39 at last check, after the electric automaker posted strong vehicle delivery data for January, besting analysts' expectations. Year-over-year, the company reported a 352.1% jump to 7,225 units for the month, while its cumulative delivery of premium smart electric SUVs hit 82,866 units, up from 75,641 units as of Dec. 31. 

Today's pop has the equity testing support at the 20-day moving average once again, after settling below the trendline during Friday's session. The 40-day moving average may also provide a net for this pullback from its Jan. 11, record high of $66.99. Nonetheless, NIO sports a 1,382.5% year-over-year lead.

NIO could get a boost from a round of bull notes, too. Currently, just three of the nine analysts in coverage consider the security a "strong buy," while the rest say "hold." What's more, the 12-month consensus price target of $55.10 is a 1.9% discount to current levels. 

Meanwhile, short sellers have been hitting the exits. Short interest dropped 17.9% in the last two reporting periods. The 68.76 million shares sold short make up a significant 8.9% of the stock's available float, however. Should this pessimism unwind even further, it could put more wind at the equity's back.

Lastly, NIO's Schaeffer's Volatility Scorecard  (SVS) stands at an elevated 99 out of 100, suggesting the security has tended to exceed option trader's volatility expectations over the past year -- a good thing for option buyers.

 
 

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