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EV Stock Surges on Repurchase Right Offer Completion

Analysts are overwhelmingly bullish towards NIO

Digital Content Manager
Jan 31, 2022 at 3:10 PM
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Chinese electric vehicle (EV) concern Nio Inc (NYSE:NIO) is surging today, last seen up 17.3% to trade at $24.51, after the company said it completed the repurchase right offer for its 4.50% convertible senior notes, due in 2024. The last time we checked on the security, it had just popped up on a list of names attracting the highest weekly options volume.

Options traders have remained much more call-biased than usual. This is per the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.74, which sits higher than just 15% of readings from the past year. 

The brokerage bunch echoes that optimism, with all but one of the seven analysts in coverage calling NIO a "strong buy." Plus, the security's 12-month consensus target price of $57.17 is a 133.3% premium to current levels.

Digging deeper, NIO is looking to recover from a Jan. 28, two-year low of $19.91, after breaching recent support at the $28 level. The 40-day moving average has kept a tight lid on the stock since early December, though, and quarter-to-date shares are down 22.7%.

NIO 40 Day

 

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