Kingsoft Cloud (NASDAQ:KC) Shares Up 5.9% - Should You Buy?

Key Points

• Kingsoft Cloud shares rose 5.9% on Monday, briefly trading as high as $10.20 before closing near $10.11, though volume was far below its average.
• Analyst sentiment remains constructive overall, with Morgan Stanley initiating coverage at Overweight and Jefferies reiterating a Buy; the stock’s consensus rating is Moderate Buy with an average target price of $17.15.
• Despite the stock move, the company continues to report losses, posting EPS of -$0.17 last quarter and revenue of $392.15 million, while analysts expect full-year EPS of -$0.45.

Kingsoft Cloud Holdings Limited Sponsored ADR (NASDAQ:KC - Get Free Report)'s share price rose 5.9% during trading on Monday . The company traded as high as $10.20 and last traded at $10.1050. 116,984 shares changed hands during mid-day trading, a decline of 92% from the average daily volume of 1,486,169 shares. The stock had previously closed at $9.54.

Wall Street Analysts Forecast Growth

Several research firms have commented on KC. Morgan Stanley began coverage on Kingsoft Cloud in a research report on Tuesday, July 7th. They issued an "overweight" rating and a $15.00 price objective on the stock. Jefferies Financial Group restated a "buy" rating and set a $17.00 price objective on shares of Kingsoft Cloud in a research note on Thursday. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Kingsoft Cloud in a research note on Tuesday, April 21st. Five equities research 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. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $17.15.

Kingsoft Cloud Stock Up 7.5%

The stock has a market cap of $3.10 billion, a P/E ratio of -21.83 and a beta of 1.99. The firm has a 50 day simple moving average of $11.64 and a two-hundred day simple moving average of $13.01. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.03 and a current ratio of 1.03.

Kingsoft Cloud (NASDAQ:KC - Get Free Report) last released its earnings results on Friday, May 15th. The company reported ($0.17) EPS for the quarter. The company had revenue of $392.15 million for the quarter. Kingsoft Cloud had a negative net margin of 9.38% and a negative return on equity of 11.67%. Equities research analysts predict 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 hedge funds and other institutional investors have recently made changes to their positions in KC. Caitong International Asset Management Co. Ltd bought a new position in shares of Kingsoft Cloud in the fourth quarter valued at $63,000. Mirae Asset Global Investments Co. Ltd. grew its position in Kingsoft Cloud by 14.7% during the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 9,148 shares of the company's stock worth $95,000 after purchasing an additional 1,170 shares in the last quarter. CWM LLC purchased a new stake in Kingsoft Cloud in the 4th quarter worth about $132,000. Equitable Holdings Inc. purchased a new stake in shares of Kingsoft Cloud in the third quarter worth approximately $150,000. Finally, Nomura Holdings Inc. acquired a new stake in shares of Kingsoft Cloud during the 2nd quarter valued at $175,000. 13.40% of the stock is currently owned by institutional investors.

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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