VNET Group, Inc. - Unsponsored ADR (NASDAQ:VNET) Stock Rated "Moderate Buy" by Sell-Side Analysts

Key Points

• Analysts give VNET a “Moderate Buy” consensus: Four of six analysts rate the stock a buy, while one rates it hold and one sell. The average 12-month price target is $16.90.
• Institutional ownership is substantial: Hedge funds and other institutional investors own 72.83% of VNET, with several firms significantly increasing or initiating positions during recent quarters.
• Shares have fallen sharply amid weak profitability: VNET opened at $3.79, near its 12-month low of $3.62, and trades below its 50- and 200-day moving averages. The company missed quarterly EPS estimates, posted negative margins and return on equity, and analysts expect a full-year loss.

Shares of VNET Group, Inc. - Unsponsored ADR (NASDAQ:VNET - Get Free Report) have earned an average recommendation of "Moderate Buy" from the six ratings firms that are currently covering the stock, MarketBeat reports. One research analyst has rated the stock with a sell rating, one has issued a hold rating and four have given a buy rating to the company. The average 1-year price target among analysts that have issued ratings on the stock in the last year is $16.90.

Several equities analysts have commented on the stock. Weiss Ratings lowered shares of VNET Group from a "sell (d+)" rating to a "sell (d)" rating in a research note on Tuesday, September 1st. Wall Street Zen cut shares of VNET Group from a "hold" rating to a "sell" rating in a report on Saturday, June 27th. Morgan Stanley reaffirmed an "overweight" rating and issued a $14.00 target price on shares of VNET Group in a research report on Wednesday, August 19th. Finally, Deutsche Bank Aktiengesellschaft assumed coverage on shares of VNET Group in a research report on Tuesday, July 7th. They issued a "buy" rating and a $12.50 price target for the company.

Institutional Trading of VNET Group

Large investors have recently made changes to their positions in the company. Infini Capital Management Ltd acquired a new position in VNET Group during the second quarter worth approximately $38,883,000. Carmignac Gestion boosted its holdings in shares of VNET Group by 1,375.1% in the second quarter. Carmignac Gestion now owns 4,760,599 shares of the information technology services provider's stock valued at $38,123,000 after acquiring an additional 4,437,879 shares during the period. Senvest Management LLC grew its position in shares of VNET Group by 211.7% during the first quarter. Senvest Management LLC now owns 2,779,637 shares of the information technology services provider's stock worth $23,321,000 after acquiring an additional 1,887,883 shares during the last quarter. Greenwoods Asset Management Hong Kong Ltd. purchased a new position in shares of VNET Group during the second quarter worth approximately $5,214,000. Finally, FACT Capital LP acquired a new position in shares of VNET Group in the 1st quarter valued at $4,012,000. 72.83% of the stock is owned by institutional investors and hedge funds.

VNET Group Price Performance

Shares of VNET opened at $3.79 on Friday. The firm has a market capitalization of $1.03 billion, a price-to-earnings ratio of -2.67 and a beta of 0.23. The firm's fifty day simple moving average is $5.97 and its 200-day simple moving average is $7.66. VNET Group has a twelve month low of $3.62 and a twelve month high of $14.48. The company has a current ratio of 0.97, a quick ratio of 0.97 and a debt-to-equity ratio of 4.35.

VNET Group (NASDAQ:VNET - Get Free Report) last issued its earnings results on Wednesday, August 19th. The information technology services provider reported ($0.06) EPS for the quarter, missing analysts' consensus estimates of ($0.02) by ($0.04). VNET Group had a negative return on equity of 36.25% and a negative net margin of 22.29%. The firm had revenue of $409.00 million for the quarter, compared to analyst estimates of $401.77 million. Equities analysts forecast that VNET Group will post -0.48 EPS for the current fiscal year.

VNET Group Company Profile

VNET Group, Inc NASDAQ: VNET, formerly known as 21Vianet Group, is a provider of data center and information technology infrastructure services in China. Founded in 1999, the company operates carrier-neutral data centers that allow customers to house servers and other equipment while connecting to multiple telecommunications and internet networks.

VNET's services include data center hosting, cloud computing, managed network services, internet connectivity, content delivery and hybrid cloud solutions.

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