Kingsoft Cloud (NASDAQ:KC) Shares Gap Down - Time to Sell?

Key Points

• Kingsoft Cloud shares gapped down, opening at $13.07 versus the prior close of $13.72 and trading around $13.12 on roughly 194,000 shares, down about 5.6% intraday.
• Analysts are mixed but overall positive with an average rating of “Moderate Buy”; four Buys, one Hold and one Sell, and an average price target of $18.30, amid recent upgrades (Goldman Sachs to Buy) and downgrades (Weiss Ratings Sell, Zacks to Hold).
• The company has a market cap of $3.91 billion and a negative P/E (-24.93), with modest liquidity (current and quick ratios ~0.93), a debt/equity of 0.39, and about 13.4% institutional ownership including recent large buys by firms like Artisan Partners.

Kingsoft Cloud Holdings Limited Sponsored ADR (NASDAQ:KC - Get Free Report)'s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $13.72, but opened at $13.07. Kingsoft Cloud shares last traded at $13.1240, with a volume of 194,019 shares traded.

Analyst Upgrades and Downgrades

A number of research analysts have commented on the stock. Weiss Ratings reissued a "sell (d-)" rating on shares of Kingsoft Cloud in a research note on Thursday, January 22nd. The Goldman Sachs Group raised shares of Kingsoft Cloud from a "neutral" rating to a "buy" rating and set a $15.60 price objective for the company in a research note on Tuesday, February 10th. Finally, Zacks Research cut shares of Kingsoft Cloud from a "strong-buy" rating to a "hold" rating in a research report on Monday, March 9th. Four analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Kingsoft Cloud has an average rating of "Moderate Buy" and an average price target of $18.30.

Kingsoft Cloud Trading Down 5.6%

The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.93 and a current ratio of 0.93. The firm has a 50-day moving average of $12.97 and a 200-day moving average of $13.02. The firm has a market capitalization of $3.91 billion, a P/E ratio of -24.93 and a beta of 2.04.

Institutional Investors Weigh In On Kingsoft Cloud

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vise Technologies Inc. bought a new stake in Kingsoft Cloud in the 2nd quarter worth $264,000. Artisan Partners Limited Partnership bought a new position in shares of Kingsoft Cloud during the third quarter valued at about $51,504,000. Penserra Capital Management LLC boosted its holdings in shares of Kingsoft Cloud by 32.8% during the third quarter. Penserra Capital Management LLC now owns 631,442 shares of the company's stock worth $9,421,000 after purchasing an additional 155,788 shares during the period. Envestnet Asset Management Inc. boosted its holdings in shares of Kingsoft Cloud by 13.5% during the second quarter. Envestnet Asset Management Inc. now owns 86,481 shares of the company's stock worth $1,083,000 after purchasing an additional 10,292 shares during the period. Finally, Infini Capital Management Ltd bought a new stake in shares of Kingsoft Cloud in the second quarter worth about $2,259,000. 13.40% of the stock is currently owned by institutional investors.

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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