Kingsoft Cloud (NASDAQ:KC) Shares Gap Up - Still a Buy?

Key Points

• Kingsoft Cloud shares gapped up at the open, rising from a prior close of $10.03 to $10.53 before settling around $10.22, a gain of about 2.2% on the day.
• Analyst sentiment is mixed but leans positive: Morgan Stanley began coverage with an Overweight rating and a $15 target, while Jefferies reiterated Buy with a $17 target; consensus remains Moderate Buy with a $17.15 price objective.
• The company’s latest results showed losses, with Q1 EPS of -$0.17 on revenue of $392.15 million, and analysts expect it to post -$0.45 EPS for the current fiscal year.

Kingsoft Cloud Holdings Limited Sponsored ADR (NASDAQ:KC - Get Free Report) shares gapped up before the market opened on Thursday . The stock had previously closed at $10.03, but opened at $10.53. Kingsoft Cloud shares last traded at $10.2170, with a volume of 391,862 shares traded.

Analyst Ratings Changes

A number of research analysts have recently commented on the stock. Weiss Ratings reissued a "sell (d-)" rating on shares of Kingsoft Cloud in a research report on Tuesday, April 21st. Morgan Stanley started coverage on shares of Kingsoft Cloud in a research note on Tuesday, July 7th. They issued an "overweight" rating and a $15.00 target price for the company. Finally, Jefferies Financial Group restated a "buy" rating and issued a $17.00 price objective on shares of Kingsoft Cloud in a research note on Thursday. Five equities research 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. Based on data from MarketBeat.com, Kingsoft Cloud currently has an average rating of "Moderate Buy" and a consensus price target of $17.15.

Kingsoft Cloud Stock Up 2.2%

The firm's fifty day moving average is $11.89 and its 200 day moving average is $13.02. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.03 and a current ratio of 1.03. The firm has a market cap of $3.10 billion, a P/E ratio of -21.81 and a beta of 1.99.

Kingsoft Cloud (NASDAQ:KC - Get Free Report) last posted its earnings results on Friday, May 15th. The company reported ($0.17) EPS for the quarter. The firm 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%. As a group, equities research analysts anticipate that Kingsoft Cloud Holdings Limited Sponsored ADR will post -0.45 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Kingsoft Cloud

A number of hedge funds and other institutional investors have recently modified their holdings of KC. Vident Advisory LLC increased its holdings in shares of Kingsoft Cloud by 1.8% during the fourth quarter. Vident Advisory LLC now owns 51,953 shares of the company's stock worth $537,000 after purchasing an additional 898 shares during the period. Mirae Asset Global Investments Co. Ltd. grew its position 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 grew its position in Kingsoft Cloud by 9.0% during the third quarter. Diversify Advisory Services LLC now owns 22,686 shares of the company's stock worth $338,000 after buying an additional 1,874 shares in the last quarter. Cetera Investment Advisers raised its holdings in Kingsoft Cloud by 11.7% in the 1st quarter. Cetera Investment Advisers now owns 33,049 shares of the company's stock valued at $442,000 after acquiring an additional 3,449 shares in the last quarter. Finally, Vanguard Personalized Indexing Management LLC lifted its position 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 valued at $432,000 after acquiring an additional 3,862 shares during the period. Institutional investors and hedge funds own 13.40% of the company's stock.

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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