New York Mellon Corporation’s (NYSE: BK) U.S. investment bank has increased its holdings in NIO Inc. (NYSE: NIO) by 18.6%, according to a 13F filing by the bank.
Bank of New York Mellon held 3.29 million shares of Nio at the end of the March quarter, up from the 2.782 million shares it held at the end of the fourth quarter of 2020.
In terms of value, the bank held $128.16 million in shares at the end of the first quarter, compared to $135.614 million shares at the end of the fourth quarter.
Nio’s shares, which ran up to a record high of $66.99 on Jan. 11, have had a tumultuous quarter amid market-wide weakness and concerns over stretched valuation.
In the first quarter, the stock was down about 20%. It has pulled back further in the quarter-to-date period. The lackluster run came despite a slew of positive news flow from the company, including strong quarterly results and deliveries for the first quarter.
Related Link: Nio Opens Flagship Store For Lifestyle Products On Alibaba’s Tmall: What You Need To Know
Why It’s Important: In late April, it was revealed that MEAG MUNICH ERGO, the investment arm of German reinsurer Munich Re, increased its Nio holdings.
It is also speculated that Tesla, Inc. (NASDAQ: TSLA) Cathie Wood’s Ark Invest could add Nio to its portfolio.
Investment by institutional investors is considered smart money moving into an asset, and it is taken as a cue by retail investors to gauge the soundness of the investment option.
At last check, Nio shares were near-flat at $33.46.
Related Link: Nio Stock Drops Below Key Support: Technical Levels To Watch
Photo courtesy of Nio.
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