Kingsoft Cloud (NASDAQ:KC) Shares Gap Up - Should You Buy?

Key Points

• Kingsoft Cloud shares opened higher, rising from a prior close of $9.47 to $10.01 before trading at $9.91. The stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment is generally positive, with five Buy ratings, one Hold and one Sell; the consensus is “Moderate Buy” with a $17.15 price target, substantially above the recent trading price.
• The company reported a quarterly loss of $0.17 per share on $392.15 million in revenue and continues to post negative profitability metrics. Institutional ownership stands at 13.40%, with several funds recently increasing their positions.

Kingsoft Cloud Holdings Limited Sponsored ADR (NASDAQ:KC - Get Free Report)'s share price gapped up before the market opened on Monday . The stock had previously closed at $9.47, but opened at $10.01. Kingsoft Cloud shares last traded at $9.91, with a volume of 162,822 shares trading hands.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on the company. Morgan Stanley started 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. Jefferies Financial Group reiterated a "buy" rating and set a $17.00 target price on shares of Kingsoft Cloud in a report on Thursday, July 16th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Kingsoft Cloud in a research report on Friday, July 17th. Five analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $17.15.

Kingsoft Cloud Price Performance

The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.37. The firm has a market cap of $2.98 billion, a PE ratio of -20.97 and a beta of 1.99. The stock has a 50 day moving average price of $10.98 and a two-hundred day moving average price of $12.98.

Kingsoft Cloud (NASDAQ:KC - Get Free Report) last issued its earnings results on Friday, May 15th. The company reported ($0.17) earnings per share (EPS) for the quarter. The firm had revenue of $392.15 million during the quarter. Kingsoft Cloud had a negative return on equity of 11.67% and a negative net margin of 9.38%. As a group, equities analysts expect that Kingsoft Cloud Holdings Limited Sponsored ADR will post -0.45 earnings per share 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. Goldman Sachs Group Inc. increased its stake in Kingsoft Cloud by 9.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 133,634 shares of the company's stock worth $1,919,000 after buying an additional 11,720 shares in the last quarter. Hsbc Holdings PLC lifted its position in shares of Kingsoft Cloud by 229.6% in the second quarter. Hsbc Holdings PLC now owns 40,706 shares of the company's stock valued at $506,000 after acquiring an additional 28,355 shares in the last quarter. Squarepoint Ops LLC boosted its stake in shares of Kingsoft Cloud by 76.9% in the second quarter. Squarepoint Ops LLC now owns 90,623 shares of the company's stock worth $1,135,000 after acquiring an additional 39,393 shares during the last quarter. Diversify Advisory Services LLC boosted its stake in shares of Kingsoft Cloud by 36.0% in the second quarter. Diversify Advisory Services LLC now owns 20,812 shares of the company's stock worth $278,000 after acquiring an additional 5,514 shares during the last quarter. Finally, Diversify Wealth Management LLC increased its position in shares of Kingsoft Cloud by 28.5% during the second quarter. Diversify Wealth Management LLC now owns 66,274 shares of the company's stock worth $887,000 after purchasing an additional 14,683 shares in the last quarter. 13.40% of the stock is currently owned by hedge funds and other institutional investors.

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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