VNET Group (NASDAQ:VNET) Hits New 12-Month Low - Should You Sell?

Key Points

• VNET Group hit a 12-month low, trading as low as $2.88, below its prior close of $3.09; its 50-day and 200-day moving averages were $4.97 and $8.01, respectively.
• Analysts hold a consensus “Moderate Buy” rating with a $14.88 average target, though UBS lowered its price objective from $13.40 to $6.80. Ratings range from five Buys to one Hold and one Sell.
• In its latest reported quarter, VNET missed EPS estimates, reporting a loss of $0.06 per share versus an expected loss of $0.02, but revenue of $409 million exceeded expectations of $401.77 million.

VNET Group, Inc. - Unsponsored ADR (NASDAQ:VNET - Get Free Report) hit a new 52-week low during mid-day trading on Friday. The stock traded as low as $2.88 and last traded at $2.9050, with a volume of 1,657,754 shares changing hands. The stock had previously closed at $3.09.

Wall Street Analysts Forecast Growth

VNET has been the topic of several research reports. Weiss Ratings lowered shares of VNET Group from a "sell (d+)" rating to a "sell (d)" rating in a research report on Tuesday, September 1st. UBS Group cut their price objective on VNET Group from $13.40 to $6.80 and set a "buy" rating for the company in a research report on Friday, October 30th. Finally, Morgan Stanley restated an "overweight" rating and set a $14.00 price objective on shares of VNET Group in a research report on Wednesday, August 19th. Five research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $14.88.

VNET Group Stock Performance

The stock's 50 day moving average price is $4.97 and its 200 day moving average price is $8.01. The company has a current ratio of 0.97, a quick ratio of 0.97 and a debt-to-equity ratio of 4.35. The company has a market cap of $802.00 million, a price-to-earnings ratio of -2.09 and a beta of 0.35.

VNET Group (NASDAQ:VNET - Get Free Report) last announced its quarterly earnings data on Wednesday, August 19th. The information technology services provider reported ($0.06) earnings per share for the quarter, missing the consensus estimate 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 for the quarter, compared to analysts' expectations of $401.77 million. On average, analysts expect that VNET Group, Inc. - Unsponsored ADR will post -0.51 EPS for the current fiscal year.

Institutional Trading of VNET Group

Several institutional investors have recently made changes to their positions in VNET. Infini Capital Management Ltd purchased a new position in shares of VNET Group in the 2nd quarter worth $38,883,000. Carmignac Gestion grew its position in VNET Group by 1,375.1% during the second quarter. Carmignac Gestion now owns 4,760,599 shares of the information technology services provider's stock valued at $38,123,000 after acquiring an additional 4,437,879 shares during the period. Senvest Management LLC increased its stake in VNET Group by 211.7% during the first quarter. Senvest Management LLC now owns 2,779,637 shares of the information technology services provider's stock worth $23,321,000 after acquiring an additional 1,887,883 shares during the last quarter. The Manufacturers Life Insurance Company increased its stake in VNET Group by 20.4% during the first quarter. The Manufacturers Life Insurance Company now owns 2,623,594 shares of the information technology services provider's stock worth $22,012,000 after acquiring an additional 443,656 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its holdings in shares of VNET Group by 16.6% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,470,654 shares of the information technology services provider's stock worth $12,330,000 after purchasing an additional 209,694 shares during the period. 72.83% of the stock is owned by hedge funds and other institutional investors.

VNET Group Company Profile

VNET Group, Inc., formerly known as 21Vianet Group, is a Chinese provider of carrier-neutral data center and information technology services. The company operates data centers that support businesses' computing, storage and connectivity needs. Its services include data center hosting and colocation, managed network services, cloud services and related IT solutions. VNET also provides connectivity between data centers, customers and internet service providers. The company serves enterprises and other organizations in China, with facilities in major markets across the country.

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