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

Key Points

• Kingsoft Cloud shares fell 3.8%, opening at $11.78 versus a prior close of $12.33, while trading below the 200-day moving average of $12.94.
• Analyst sentiment remains generally positive: five analysts rate the stock Buy, one rates it Hold and one rates it Sell, producing a “Moderate Buy” consensus and a $17.15 average price target.
• The company remains unprofitable, reporting a quarterly loss of $0.17 per share, a negative 9.38% net margin and an expected full-year loss of $0.39 per share; CEO Tao Zou also sold 300,000 shares.

Kingsoft Cloud Holdings Limited Sponsored ADR (NASDAQ:KC - Get Free Report)'s stock price gapped down prior to trading on Monday . The stock had previously closed at $12.33, but opened at $11.78. Kingsoft Cloud shares last traded at $11.7490, with a volume of 746,397 shares trading hands.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on KC shares. Weiss Ratings restated a "sell (d-)" rating on shares of Kingsoft Cloud in a report on Friday, July 17th. 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 for the company. Finally, Jefferies Financial Group reissued a "buy" rating and issued a $17.00 price objective on shares of Kingsoft Cloud in a research note on Thursday, July 16th. Five analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, Kingsoft Cloud currently has an average rating of "Moderate Buy" and a consensus price target of $17.15.

Kingsoft Cloud Stock Down 3.8%

The stock has a 50-day moving average of $10.52 and a 200 day moving average of $12.94. The company has a market capitalization of $3.58 billion, a PE ratio of -25.22 and a beta of 1.99. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.37.

Kingsoft Cloud (NASDAQ:KC - Get Free Report) last announced its quarterly earnings data on Friday, May 15th. The company reported ($0.17) earnings per share (EPS) for the quarter. The business had revenue of $392.15 million during the quarter. Kingsoft Cloud had a negative net margin of 9.38% and a negative return on equity of 11.67%. Sell-side analysts anticipate that Kingsoft Cloud Holdings Limited Sponsored ADR will post -0.39 EPS for the current year.

Insider Transactions at Kingsoft Cloud

In other Kingsoft Cloud news, CEO Tao Zou sold 300,000 shares of the business's stock in a transaction on Friday, July 17th. The stock was sold at an average price of $0.64, for a total value of $192,000.00. Following the sale, the chief executive officer directly owned 1,700,000 shares in the company, valued at $1,088,000. The trade was a 15.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 14.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Kingsoft Cloud

Several large investors have recently modified their holdings of the business. Caitong International Asset Management Co. Ltd bought a new position in Kingsoft Cloud in the 4th quarter worth approximately $63,000. Mirae Asset Global Investments Co. Ltd. grew its position in shares of Kingsoft Cloud by 14.7% in the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 9,148 shares of the company's stock valued at $95,000 after purchasing an additional 1,170 shares in the last quarter. CWM LLC bought a new stake in shares of Kingsoft Cloud during the 4th quarter valued at $132,000. Equitable Holdings Inc. purchased a new stake in Kingsoft Cloud during the 3rd quarter worth about $150,000. Finally, Nomura Holdings Inc. bought a new position in Kingsoft Cloud in the 2nd quarter worth about $175,000. Hedge funds and other institutional investors own 13.40% of the company's stock.

About Kingsoft Cloud

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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