Kingsoft Cloud (NASDAQ:KC) Shares Down 5.6% - What's Next?

Key Points

• Kingsoft Cloud shares fell 5.6% in mid-day trading, hitting an intraday low of $9.29 before last trading at $9.50, well below the prior close of $10.06.
• Analyst sentiment remains mixed but generally constructive: Morgan Stanley started coverage with an overweight rating and a $15 target, while Jefferies reiterated a buy with a $17 target. MarketBeat data shows a consensus rating of Moderate Buy with an average price target of $17.15.
• The company continues to post weak fundamentals, including a recent quarterly loss of $0.17 per share and a negative net margin, though institutional investors have recently increased or initiated positions in the stock.

Kingsoft Cloud Holdings Limited Sponsored ADR (NASDAQ:KC - Get Free Report) shares were down 5.6% during mid-day trading on Friday . The company traded as low as $9.29 and last traded at $9.50. 476,545 shares traded hands during mid-day trading, a decline of 68% from the average daily volume of 1,486,370 shares. The stock had previously closed at $10.06.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on KC shares. Morgan Stanley began coverage on Kingsoft Cloud in a research note on Tuesday, July 7th. They set an "overweight" rating and a $15.00 price target on the stock. Weiss Ratings reiterated a "sell (d-)" rating on shares of Kingsoft Cloud in a report on Tuesday, April 21st. Finally, Jefferies Financial Group reiterated a "buy" rating and set a $17.00 target price on shares of Kingsoft Cloud in a research report on Thursday. Five investment 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, Kingsoft Cloud has an average rating of "Moderate Buy" and a consensus price target of $17.15.

Kingsoft Cloud Stock Performance

The firm has a market capitalization of $2.89 billion, a P/E ratio of -20.32 and a beta of 1.99. The company has a 50-day moving average of $11.77 and a 200-day moving average of $13.02. 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 (NASDAQ:KC - Get Free Report) last released its quarterly earnings results 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 during the quarter. On average, equities analysts anticipate that Kingsoft Cloud Holdings Limited Sponsored ADR will post -0.45 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Artisan Partners Limited Partnership boosted its stake in shares of Kingsoft Cloud by 16.4% in the 4th quarter. Artisan Partners Limited Partnership now owns 4,016,945 shares of the company's stock valued at $41,535,000 after purchasing an additional 564,907 shares during the last quarter. The Manufacturers Life Insurance Company acquired a new position in Kingsoft Cloud in the first quarter valued at $9,456,000. Defiance ETFs LLC bought a new stake in Kingsoft Cloud during the fourth quarter valued at $6,463,000. Maxi Investments CY Ltd acquired a new stake in Kingsoft Cloud during the 4th quarter worth about $5,980,000. Finally, LMR Partners LLP grew its holdings in Kingsoft Cloud by 1,114.5% during the 2nd quarter. LMR Partners LLP now owns 518,200 shares of the company's stock worth $6,488,000 after acquiring an additional 475,533 shares during the period. Institutional investors own 13.40% of the company's stock.

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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