VNET Group Sees Unusually High Options Volume (NASDAQ:VNET)

Key Points

• VNET Group saw unusually high options activity: Traders purchased 23,406 call options, roughly 348% above the typical volume of 5,230 contracts.
• The stock fell 5.3% to $6.39, while quarterly results showed an adjusted loss of $0.06 per share, missing estimates, despite revenue of $409 million exceeding forecasts.
• Analyst sentiment remains moderately bullish, with a consensus “Moderate Buy” rating and $16.90 price target; institutional investors own 72.83% of the company.

VNET Group, Inc. - Unsponsored ADR (NASDAQ:VNET - Get Free Report) was the recipient of unusually large options trading activity on Wednesday. Traders bought 23,406 call options on the company. This is an increase of approximately 348% compared to the typical volume of 5,230 call options.

VNET Group Trading Down 5.3%

NASDAQ VNET traded down $0.36 during trading hours on Wednesday, hitting $6.39. 743,997 shares of the company's stock were exchanged, compared to its average volume of 6,429,078. The firm has a market cap of $1.73 billion, a price-to-earnings ratio of -4.50 and a beta of 0.27. The stock has a 50-day simple moving average of $7.22 and a 200 day simple moving average of $8.63. The company has a current ratio of 0.97, a quick ratio of 0.97 and a debt-to-equity ratio of 4.35. VNET Group has a 1-year low of $5.91 and a 1-year high of $14.48.

VNET Group (NASDAQ:VNET - Get Free Report) last posted its quarterly earnings results on Wednesday, August 19th. The information technology services provider reported ($0.06) EPS for the quarter, missing analysts' consensus estimates of ($0.02) by ($0.04). VNET Group had a negative return on equity of 36.25% and a negative net margin of 22.29%.The company had revenue of $409.00 million during the quarter, compared to analyst estimates of $401.77 million. On average, equities analysts forecast that VNET Group will post -0.27 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the company. Weiss Ratings cut VNET Group from a "sell (d+)" rating to a "sell (d)" rating in a report on Tuesday, September 1st. Zacks Research raised VNET Group from a "strong sell" rating to a "hold" rating in a research note on Wednesday, May 27th. Morgan Stanley restated an "overweight" rating and set a $14.00 price target on shares of VNET Group in a report on Wednesday, August 19th. Deutsche Bank Aktiengesellschaft started coverage on VNET Group in a research note on Tuesday, July 7th. They issued a "buy" rating and a $12.50 price objective for the company. Finally, Jefferies Financial Group reiterated a "buy" rating and issued a $24.79 price objective on shares of VNET Group in a report on Tuesday, May 26th. Four research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $16.90.

Institutional Trading of VNET Group

Institutional investors and hedge funds have recently made changes to their positions in the company. Norges Bank purchased a new stake in VNET Group in the 4th quarter valued at about $65,650,000. Infini Capital Management Ltd purchased a new position in shares of VNET Group in the 2nd quarter worth approximately $38,883,000. Carmignac Gestion boosted its stake in shares of VNET Group by 1,375.1% in the 2nd quarter. Carmignac Gestion now owns 4,760,599 shares of the information technology services provider's stock worth $38,123,000 after buying an additional 4,437,879 shares during the last quarter. Temasek Holdings Private Ltd lifted its holdings in VNET Group by 988.7% during the fourth quarter. Temasek Holdings Private Ltd now owns 3,253,150 shares of the information technology services provider's stock worth $27,522,000 after acquiring an additional 2,954,350 shares during the period. Finally, BNP Paribas Financial Markets boosted its position in VNET Group by 674.8% in the second quarter. BNP Paribas Financial Markets now owns 3,343,088 shares of the information technology services provider's stock worth $23,067,000 after purchasing an additional 2,911,604 shares during the last quarter. Hedge funds and other institutional investors own 72.83% of the company's stock.

VNET Group Company Profile

VNET Group, Inc NASDAQ: VNET is a leading carrier-neutral internet data center (IDC) services provider in China. Established in 1999 and headquartered in Beijing, the company delivers a full spectrum of infrastructure solutions that support the growing digital economy. Its core offerings include data center colocation, managed hosting, network connectivity, and disaster recovery services designed to meet the performance and reliability requirements of enterprise and internet content customers.

The company's product portfolio spans private cloud, public cloud and hybrid cloud deployments, enabling clients to scale computing resources on demand.

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