Insider Selling: Kingsoft Cloud (NASDAQ:KC) CEO Sells 300,000 Shares

Key Points

• CEO Tao Zou sold 300,000 Kingsoft Cloud shares at an average price of $0.64, generating $192,000 and reducing his direct ownership by 15% to 1.7 million shares.
• Kingsoft Cloud reported a quarterly loss of $0.17 per share on $392.15 million in revenue, with negative net margin and return on equity; analysts forecast a full-year loss of $0.45 per share.
• Despite the insider sale and ongoing losses, analysts maintain a “Moderate Buy” consensus with an average price target of $17.15, while institutional investors and hedge funds own 13.4% of the stock.

Kingsoft Cloud Holdings Limited Sponsored ADR (NASDAQ:KC - Get Free Report) CEO Tao Zou sold 300,000 shares of the company's stock in a transaction dated Friday, July 17th. The shares were sold at an average price of $0.64, for a total transaction of $192,000.00. Following the completion of the sale, the chief executive officer directly owned 1,700,000 shares of the company's stock, valued at $1,088,000. The trade was a 15.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink.

Kingsoft Cloud Stock Performance

Shares of NASDAQ KC traded up $0.14 during midday trading on Tuesday, reaching $10.06. 520,984 shares of the company were exchanged, compared to its average volume of 1,462,862. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.37. Kingsoft Cloud Holdings Limited Sponsored ADR has a 1 year low of $8.35 and a 1 year high of $18.52. The stock has a fifty day simple moving average of $10.88 and a 200 day simple moving average of $12.97. The stock has a market cap of $3.04 billion, a P/E ratio of -21.39 and a beta of 1.99.

Kingsoft Cloud (NASDAQ:KC - Get Free Report) last posted its quarterly earnings data on Friday, May 15th. The company reported ($0.17) EPS for the quarter. Kingsoft Cloud had a negative net margin of 9.38% and a negative return on equity of 11.67%. The company had revenue of $392.15 million for the quarter. On average, research analysts forecast that Kingsoft Cloud Holdings Limited Sponsored ADR will post -0.45 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Kingsoft Cloud

A number of institutional investors and hedge funds have recently made changes to their positions in KC. The Manufacturers Life Insurance Company purchased a new position in shares of Kingsoft Cloud in the 1st quarter valued at about $9,456,000. Defiance ETFs LLC purchased a new stake in Kingsoft Cloud during the fourth quarter worth about $6,463,000. Maxi Investments CY Ltd acquired a new position in Kingsoft Cloud during the fourth quarter worth about $5,980,000. Artisan Partners Limited Partnership increased its holdings in Kingsoft Cloud by 16.4% in the fourth quarter. Artisan Partners Limited Partnership now owns 4,016,945 shares of the company's stock valued at $41,535,000 after buying an additional 564,907 shares in the last quarter. Finally, LMR Partners LLP increased its holdings in Kingsoft Cloud by 1,114.5% in the second quarter. LMR Partners LLP now owns 518,200 shares of the company's stock valued at $6,488,000 after buying an additional 475,533 shares in the last quarter. 13.40% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on KC. Weiss Ratings restated a "sell (d-)" rating on shares of Kingsoft Cloud in a research report on Friday, July 17th. Jefferies Financial Group reaffirmed a "buy" rating and issued a $17.00 target price on shares of Kingsoft Cloud in a report on Thursday, July 16th. Finally, Morgan Stanley assumed coverage on shares of Kingsoft Cloud in a report on Tuesday, July 7th. They set an "overweight" rating and a $15.00 price target for the company. Five analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $17.15.

Kingsoft Cloud Company Profile

Kingsoft Cloud Holdings Limited NASDAQ: KC is a leading provider of cloud computing services in China, offering a comprehensive suite of infrastructure and platform solutions to enterprise customers. Established in 2012 as a subsidiary of Kingsoft Corporation, the company has grown into an independent public entity with dual listings, serving as a critical backbone for digital transformation across multiple industries. Headquartered in Beijing, Kingsoft Cloud leverages advanced technologies to optimize cloud operations and deliver scalable, reliable services.

The company's core offerings span Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS), encompassing compute, storage, database, content delivery networks (CDN) and security solutions.

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