Kingsoft Cloud (NASDAQ:KC) Reaches New 52-Week Low - Should You Sell?

Key Points

• Kingsoft Cloud shares fell to a new 52-week low of $8.05, below the 50-day moving average of $9.64 and the 200-day average of $12.06.
• Analyst sentiment remains generally positive despite the decline: the stock has a consensus “Moderate Buy” rating and an average price target of $16.67, although one analyst rates it a sell.
• Institutional investors and hedge funds own 13.4% of the company, with several large investors recently initiating or increasing positions in the China-based cloud services provider.

Kingsoft Cloud Holdings Limited Sponsored ADR (NASDAQ:KC - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Thursday. The company traded as low as $8.05 and last traded at $8.0550, with a volume of 905,903 shares traded. The stock had previously closed at $8.63.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on KC shares. The Goldman Sachs Group set a $18.00 target price on shares of Kingsoft Cloud in a report on Tuesday, September 1st. Bank of America reiterated a "buy" rating on shares of Kingsoft Cloud in a research note on Wednesday, August 19th. Weiss Ratings restated a "sell (d-)" rating on shares of Kingsoft Cloud in a research report on Thursday, October 15th. Morgan Stanley began coverage on Kingsoft Cloud in a research report on Tuesday, July 7th. They set an "overweight" rating and a $15.00 price target on the stock. Finally, Zacks Research upgraded shares of Kingsoft Cloud from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, October 13th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and one has issued a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $16.67.

Kingsoft Cloud Stock Performance

The firm's 50 day moving average is $9.64 and its 200 day moving average is $12.06. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.01 and a current ratio of 1.01. The stock has a market cap of $2.44 billion, a P/E ratio of -28.77 and a beta of 1.96.

Institutional Trading of Kingsoft Cloud

A number of large investors have recently made changes to their positions in the stock. The Manufacturers Life Insurance Company acquired a new stake in shares of Kingsoft Cloud during the first quarter worth approximately $9,456,000. XY Capital Ltd lifted its holdings in shares of Kingsoft Cloud by 84.2% during the 1st quarter. XY Capital Ltd now owns 274,946 shares of the company's stock valued at $3,673,000 after buying an additional 125,671 shares during the last quarter. Inspire Investing LLC increased its stake in shares of Kingsoft Cloud by 18.2% during the 3rd quarter. Inspire Investing LLC now owns 265,203 shares of the company's stock worth $2,419,000 after purchasing an additional 40,803 shares during the last quarter. Matthews International Capital Management LLC bought a new position in Kingsoft Cloud during the first quarter valued at about $2,944,000. Finally, Baader Bank Aktiengesellschaft acquired a new stake in Kingsoft Cloud in the 1st quarter worth approximately $2,405,000. Institutional investors and hedge funds own 13.40% of the company's stock.

About Kingsoft Cloud

Kingsoft Cloud Holdings Limited is a China-based cloud service provider that offers infrastructure and technology services to businesses, government organizations and other institutions. The company provides public cloud, enterprise cloud and industry-specific cloud solutions designed to support computing, data storage, networking and digital transformation.

Its product and service portfolio includes cloud computing infrastructure, content delivery and networking services, databases, storage, information security and related technical support.

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