Kingsoft Cloud (NASDAQ:KC) Trading 7.4% Higher - Still a Buy?

Key Points

• Kingsoft Cloud shares rose 7.4% to approximately $10.89 in mid-day trading, although volume was 73% below the average session level.
• Analyst sentiment is mixed but leans positive: five analysts rate the stock a Buy, one a Hold and one a Sell, producing a consensus “Moderate Buy” rating and an average price target of $17.15.
• 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; meanwhile, CEO Tao Zou sold 300,000 shares, reducing his stake by 15%.

Kingsoft Cloud Holdings Limited Sponsored ADR (NASDAQ:KC - Get Free Report) shares were up 7.4% during mid-day trading on Friday . The stock traded as high as $11.20 and last traded at $10.8920. 394,211 shares traded hands during mid-day trading, a decline of 73% from the average session volume of 1,453,482 shares. The stock had previously closed at $10.14.

Analysts Set New Price Targets

A number of research firms have commented on KC. Jefferies Financial Group reissued a "buy" rating and issued a $17.00 price objective on shares of Kingsoft Cloud in a research note on Thursday, July 16th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Kingsoft Cloud in a report on Friday, July 17th. Finally, Morgan Stanley initiated coverage on shares of Kingsoft Cloud in a research report on Tuesday, July 7th. They set an "overweight" rating and a $15.00 price target on the stock. Five analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $17.15.

Kingsoft Cloud Price Performance

The stock has a 50-day simple moving average of $10.64 and a 200 day simple moving average of $12.95. The stock has a market capitalization of $3.34 billion, a P/E ratio of -23.52 and a beta of 1.99. 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) earnings per share for the quarter. The firm had revenue of $392.15 million for the quarter. Kingsoft Cloud had a negative return on equity of 11.67% and a negative net margin of 9.38%. On average, equities analysts forecast that Kingsoft Cloud Holdings Limited Sponsored ADR will post -0.45 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Kingsoft Cloud news, CEO Tao Zou sold 300,000 shares of the business's stock in a transaction dated Friday, July 17th. The stock was sold at an average price of $0.64, for a total transaction of $192,000.00. Following the completion of the sale, the chief executive officer directly owned 1,700,000 shares of the company's stock, valued at approximately $1,088,000. The trade was a 15.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Corporate insiders own 14.20% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Maxi Investments CY Ltd acquired a new position in Kingsoft Cloud in the fourth quarter valued at approximately $5,980,000. XY Capital Ltd boosted its stake in Kingsoft Cloud by 84.2% in the first quarter. XY Capital Ltd now owns 274,946 shares of the company's stock valued at $3,673,000 after acquiring an additional 125,671 shares during the last quarter. Matthews International Capital Management LLC acquired a new stake in Kingsoft Cloud during the 1st quarter worth $2,944,000. Baader Bank Aktiengesellschaft acquired a new stake in Kingsoft Cloud during the 1st quarter worth $2,405,000. Finally, Fideuram Asset Management Ireland dac bought a new stake in shares of Kingsoft Cloud during the 4th quarter valued at $526,000. 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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