Kingsoft Cloud (NASDAQ:KC) Shares Gap Up - Time to Buy?

Key Points

• Kingsoft Cloud gapped up premarket, opening at $13.80 versus the prior close of $11.99 (last trade $13.71), a roughly 18.3% jump on about 1.23 million shares traded.
• Analyst sentiment has shifted bullishly—Zacks upgraded to "strong-buy" and Goldman Sachs to "buy" with a $15.60 target—leaving a MarketBeat consensus of "Moderate Buy" and a $18.30 consensus target.
• The company has a $4.28 billion market cap and a negative P/E (-27.27); institutional interest is modest (about 13.4% ownership) with several hedge funds recently adding or trimming positions.

Kingsoft Cloud Holdings Limited Sponsored ADR (NASDAQ:KC - Get Free Report) gapped up before the market opened on Monday . The stock had previously closed at $11.99, but opened at $13.80. Kingsoft Cloud shares last traded at $13.71, with a volume of 1,226,106 shares trading hands.

Analysts Set New Price Targets

A number of analysts recently commented on the company. Zacks Research upgraded Kingsoft Cloud from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, January 27th. The Goldman Sachs Group upgraded shares of Kingsoft Cloud from a "neutral" rating to a "buy" rating and set a $15.60 price objective on the stock in a research note on Tuesday, February 10th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Kingsoft Cloud in a report on Thursday, January 22nd. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $18.30.

Kingsoft Cloud Stock Up 18.3%

The company has a debt-to-equity ratio of 0.39, a current ratio of 0.93 and a quick ratio of 0.93. The company has a 50-day moving average of $12.59 and a two-hundred day moving average of $13.04. The company has a market capitalization of $4.28 billion, a PE ratio of -27.27 and a beta of 2.04.

Hedge Funds Weigh In On Kingsoft Cloud

Several large investors have recently added to or reduced their stakes in KC. Vise Technologies Inc. bought a new stake in shares of Kingsoft Cloud during the 2nd quarter valued at $264,000. ABC Arbitrage SA boosted its holdings in Kingsoft Cloud by 49.0% in the 2nd quarter. ABC Arbitrage SA now owns 134,331 shares of the company's stock worth $1,682,000 after buying an additional 44,206 shares during the period. Penserra Capital Management LLC purchased a new stake in Kingsoft Cloud in the 2nd quarter worth $5,955,000. Artisan Partners Limited Partnership purchased a new stake in Kingsoft Cloud in the 3rd quarter worth $51,504,000. Finally, Envestnet Asset Management Inc. raised its holdings in Kingsoft Cloud by 13.5% during the second quarter. Envestnet Asset Management Inc. now owns 86,481 shares of the company's stock valued at $1,083,000 after acquiring an additional 10,292 shares during the period. Hedge funds and other institutional investors 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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