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

Key Points

• Kingsoft Cloud shares gapped down before trading on Tuesday, opening at $9.81 after closing at $10.39 and last trading near $9.83.
• Wall Street sentiment is still generally positive, with a Moderate Buy consensus and an average price target of $17.65, though Weiss Ratings reiterated a sell rating.
• The company remains unprofitable, posting a Q2 EPS of -$0.17 with negative net margin and ROE, while analysts expect -0.45 EPS for the full year.

Kingsoft Cloud Holdings Limited Sponsored ADR (NASDAQ:KC - Get Free Report)'s share price gapped down prior to trading on Tuesday . The stock had previously closed at $10.39, but opened at $9.81. Kingsoft Cloud shares last traded at $9.83, with a volume of 296,806 shares changing hands.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of Kingsoft Cloud in a research note on Tuesday, April 21st. Morgan Stanley assumed coverage on Kingsoft Cloud in a report on Tuesday, July 7th. They set an "overweight" rating and a $15.00 target price on the stock. Finally, Jefferies Financial Group lifted their target price on Kingsoft Cloud from $17.00 to $19.00 and gave the stock a "buy" rating in a research report on Wednesday, March 25th. 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 company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $17.65.

Kingsoft Cloud Stock Performance

The stock's 50-day moving average price is $12.13 and its 200-day moving average price is $13.03. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.37. The company has a market capitalization of $2.97 billion, a P/E ratio of -20.94 and a beta of 1.99.

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 for the quarter. Kingsoft Cloud had a negative net margin of 9.38% and a negative return on equity of 11.67%. The business had revenue of $392.15 million for the quarter. As a group, equities analysts expect that Kingsoft Cloud Holdings Limited Sponsored ADR will post -0.45 EPS for the current year.

Institutional Trading of Kingsoft Cloud

A number of institutional investors and hedge funds have recently made changes to their positions in KC. Maxi Investments CY Ltd acquired a new position in Kingsoft Cloud during the 4th quarter valued at approximately $5,980,000. Matthews International Capital Management LLC acquired a new stake in Kingsoft Cloud in the first quarter worth $2,944,000. XY Capital Ltd increased its position in Kingsoft Cloud by 1,255.9% in the fourth quarter. XY Capital Ltd now owns 149,275 shares of the company's stock worth $1,544,000 after buying an additional 138,266 shares during the period. Fideuram Asset Management Ireland dac bought a new stake in Kingsoft Cloud in the fourth quarter valued at $526,000. Finally, The Manufacturers Life Insurance Company bought a new stake in Kingsoft Cloud in the first quarter valued at $9,456,000. 13.40% of the stock is currently owned by institutional investors and hedge funds.

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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