Kingsoft Cloud (NASDAQ:KC) Shares Gap Up - Here's Why

Key Points

• Kingsoft Cloud shares opened higher, rising from a $9.38 close to $9.71 and trading as high as $9.825, despite remaining below their 50-day and 200-day moving averages.
• Analyst sentiment is broadly positive: four analysts rate the stock Buy, one Hold and one Sell, producing a consensus “Moderate Buy” rating and a $16.67 average price target.
• CEO Tao Zou sold 300,000 shares, reducing his position by 15%; insiders own 14.2% of the company, while institutional investors hold 13.4%.

Shares of Kingsoft Cloud Holdings Limited Sponsored ADR (NASDAQ:KC - Get Free Report) gapped up prior to trading on Friday . The stock had previously closed at $9.38, but opened at $9.71. Kingsoft Cloud shares last traded at $9.8250, with a volume of 467,778 shares trading hands.

Analyst Ratings Changes

A number of analysts have commented on KC shares. Morgan Stanley started coverage on Kingsoft Cloud in a report on Tuesday, July 7th. They issued an "overweight" rating and a $15.00 target price for the company. Weiss Ratings restated a "sell (d-)" rating on shares of Kingsoft Cloud in a research note on Friday, July 17th. Bank of America reaffirmed a "buy" rating on shares of Kingsoft Cloud in a report on Wednesday, August 19th. Jefferies Financial Group reiterated a "buy" rating on shares of Kingsoft Cloud in a research note on Wednesday, August 19th. Finally, The Goldman Sachs Group set a $18.00 price objective on shares of Kingsoft Cloud in a report on Tuesday, September 1st. Four equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $16.67.

Kingsoft Cloud Price Performance

The firm has a 50-day simple moving average of $10.65 and a 200-day simple moving average of $12.40. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.01 and a quick ratio of 1.01. The firm has a market capitalization of $2.98 billion, a PE ratio of -35.27 and a beta of 1.97.

Insider Activity

In related news, CEO Tao Zou sold 300,000 shares of Kingsoft Cloud stock in a transaction that occurred on Friday, July 17th. The stock was sold at an average price of $0.64, for a total transaction of $192,000.00. Following the sale, the chief executive officer owned 1,700,000 shares of the company's stock, valued at approximately $1,088,000. This trade represents a 15.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 14.20% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Caitong International Asset Management Co. Ltd bought a new position in shares of Kingsoft Cloud during the fourth quarter worth $73,000. Cetera Investment Advisers increased its holdings in Kingsoft Cloud by 11.7% in the 1st quarter. Cetera Investment Advisers now owns 33,049 shares of the company's stock valued at $442,000 after acquiring an additional 3,449 shares during the last quarter. ABC Arbitrage SA bought a new stake in Kingsoft Cloud in the 1st quarter valued at $442,000. Blue Trust Inc. lifted its stake in Kingsoft Cloud by 39.2% in the 1st quarter. Blue Trust Inc. now owns 35,085 shares of the company's stock worth $469,000 after purchasing an additional 9,881 shares in the last quarter. Finally, Fideuram Asset Management Ireland dac purchased a new stake in Kingsoft Cloud in the 4th quarter worth $526,000. 13.40% of the stock is currently owned by institutional investors.

About Kingsoft Cloud

Kingsoft Cloud Holdings Limited is a cloud service provider headquartered in China. The company offers public cloud, enterprise cloud and specialized cloud solutions designed to help organizations build, operate and scale digital applications and infrastructure.

Its products and services include cloud computing, cloud storage, content delivery networks, databases, big data and artificial intelligence services, as well as cloud-based security and network solutions. Kingsoft Cloud serves customers across industries such as internet services, financial services, healthcare, manufacturing and public-sector organizations.

Founded in 2012, Kingsoft Cloud has developed a network of data centers and cloud infrastructure serving customers primarily in China, with services also available in selected international markets.

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