Nio(NYSE:NIO) is one of the most polarizing EV stocks in the world right now. With an upcoming earnings report and a big investment in the company, NIO stock is looking like it could turn things around from the consecutive drops it has suffered through April.
The company is catching buzz today thanks to its most recent news.
German reinsurerMeag Munich Ergo’sinvestment division is going big on electric vehicles today. A 13F filed by the companyshows it is increasing its holdings in the sector by the thousands. Its stake inTesla(NASDAQ:TSLA) increased from just under 5,900 shares to just over 24,000 in Q1. Meanwhile, it bulked up its Nio holdings as well. The company increased its 83,800 shares in 2020 to 107,800 in the first quarter.
The Meag Munich Ergo purchase has big implications for Nio. While it has reliable support from retail investors, the bullishness of institutions on Nio is showing just how strong a play it can be. On top of bubbling rumors of Cathie Wood’sArk Investpotentially adding NIO stockto some of its ETFs, the institutional chatter is aplenty.
Institutional Buying Indicate Bullishness on NIO Stock
It will be interesting to see where the EV company goes in May. The company will be reporting its detailed earnings this Thursday, April 29. Many are excited about the report because of the existing info we have on Nio’s Q1 deliveries. They think a positive report will catalyze more gains.InvestorPlacecontributor Mark Hake is one of the many whosee Nio as an undervalued play, and think that the report can prove that.
The information Nio is providing already about its Q1 deliveries is exciting to investors. The company delivered an impressive 20,000 EVs in the first three months of 2021, up 423% year-over-year. This indicates that earnings could be right where NIO stock bulls want them to be.