5 Best ADR Stocks to Buy in 2021

3. NIO Inc. (NYSE: NIO)

Number of Hedge Fund Holders: 28      

NIO Inc. (NYSE: NIO) is a Shanghai-based automobile manufacturer. It was founded in 2014 and is ranked third on our list of 10 best ADR stocks to buy In 2021. The company has gained prominence in recent years as one of the premier electric vehicle makers in China, quite possibly the largest new energy vehicle market in the world. The company makes and sells electric vehicles in the United Kingdom, Germany, and the United States in addition to China. It markets electric SUVs and smart electric sedans. 

On June 1, investment advisory Citi upgraded NIO Inc. (NYSE: NIO) stock to Buy from Neutral with a price target of $58.30 on the back of increasing demand for electric vehicles in the latter part of April after a lean spell through the preceding few weeks. 

At the end of the first quarter of 2021, 28 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in NIO Inc. (NYSE: NIO), down from 34 in the preceding quarter worth $2.6 billion.

In its Q2 2020 investor letter, McLain Capital, an asset management firm, highlighted a few stocks and NIO Inc. (NYSE: NIO) was one of them. Here is what the fund said:

“Nio, Inc. (NIO): It’s stock up 360% since the beginning of June on no news, and one of our more troublesome short positions, the Chinese electric vehicle manufacturer is valued at a whopping $17bln on trailing revenue of only $1.1bln. In 2019, the business ran a -17% gross margin, a -140% EBITDA margin & burned ~$1.5bln in cash in 2019. The stock has become one of the most popular stocks among retail traders with approximately 250,000 accounts holding the name just on the popular Robinhood trading platform.”