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

Key Points

• Kingsoft Cloud shares fell 9.5%, opening at $11.63 after previously closing at $12.37, with the latest reported trade at $11.19.
• Analyst sentiment remains broadly positive: five analysts rate the stock Buy, one rates it Hold and one rates it Sell, producing a consensus “Moderate Buy” rating 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 negative 11.67% return on equity; analysts expect a full-year loss of $0.36 per share.

Kingsoft Cloud Holdings Limited Sponsored ADR (NASDAQ:KC - Get Free Report) gapped down prior to trading on Thursday . The stock had previously closed at $12.37, but opened at $11.63. Kingsoft Cloud shares last traded at $11.1940, with a volume of 566,620 shares changing hands.

Wall Street Analyst Weigh In

KC has been the topic of a number of research reports. Morgan Stanley started coverage on shares of Kingsoft Cloud in a research report on Tuesday, July 7th. They issued an "overweight" rating and a $15.00 price objective on the stock. Weiss Ratings reiterated a "sell (d-)" rating on shares of Kingsoft Cloud in a research note on Friday, July 17th. Bank of America reissued a "buy" rating on shares of Kingsoft Cloud in a research report on Wednesday. Finally, Jefferies Financial Group restated a "buy" rating on shares of Kingsoft Cloud in a research note on Wednesday. Five investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $17.15.

Kingsoft Cloud Trading Down 9.5%

The company has a market cap of $3.38 billion, a price-to-earnings ratio of -23.81 and a beta of 1.99. 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 business's 50 day moving average price is $10.42 and its 200-day moving average price is $12.86.

Kingsoft Cloud (NASDAQ:KC - Get Free Report) last announced its earnings results on Friday, May 15th. The company reported ($0.17) earnings per share for the quarter. Kingsoft Cloud had a negative return on equity of 11.67% and a negative net margin of 9.38%.The firm had revenue of $392.15 million for the quarter. On average, equities analysts anticipate that Kingsoft Cloud Holdings Limited Sponsored ADR will post -0.36 EPS for the current fiscal year.

Insider Buying and Selling

In other Kingsoft Cloud news, CEO Tao Zou sold 300,000 shares of the firm's stock in a transaction on Friday, July 17th. The stock was sold at an average price of $0.64, for a total transaction of $192,000.00. Following the transaction, the chief executive officer owned 1,700,000 shares in the company, valued at $1,088,000. This trade represents a 15.00% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 14.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of KC. Vident Advisory LLC raised its stake in Kingsoft Cloud by 1.8% in the fourth quarter. Vident Advisory LLC now owns 51,953 shares of the company's stock valued at $537,000 after purchasing an additional 898 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. grew its stake in Kingsoft Cloud by 14.7% during the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 9,148 shares of the company's stock worth $95,000 after buying an additional 1,170 shares in the last quarter. Diversify Advisory Services LLC raised its position in shares of Kingsoft Cloud by 9.0% in the 3rd quarter. Diversify Advisory Services LLC now owns 22,686 shares of the company's stock valued at $338,000 after buying an additional 1,874 shares in the last quarter. Cetera Investment Advisers lifted its holdings in shares of Kingsoft Cloud by 11.7% during the 1st quarter. Cetera Investment Advisers now owns 33,049 shares of the company's stock worth $442,000 after acquiring an additional 3,449 shares during the period. Finally, Vanguard Personalized Indexing Management LLC lifted its holdings in shares of Kingsoft Cloud by 10.2% during the 4th quarter. Vanguard Personalized Indexing Management LLC now owns 41,805 shares of the company's stock worth $432,000 after acquiring an additional 3,862 shares during the period. 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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