VNET Group (NASDAQ:VNET) Hits New 12-Month Low - What's Next?

Key Points

• VNET Group shares hit a new 52-week low, falling to $3.57 during Wednesday’s trading session, well below the 50-day and 200-day moving averages of $5.76 and $8.46.
• Analyst sentiment remains mixed but leans positive: four analysts rate the stock Buy, while one rates it Hold and one Sell. The consensus is “Moderate Buy” with a $16.90 average price target, including targets of $14.00 from Morgan Stanley and $12.50 from Deutsche Bank.
• The company reported quarterly revenue of $409 million, beating expectations, but its $0.06 loss per share was worse than forecast. VNET continues to face negative profitability metrics, including a 22.29% net margin and 36.25% negative return on equity, while institutional investors own 72.83% of its stock.

VNET Group, Inc. - Unsponsored ADR (NASDAQ:VNET - Get Free Report)'s stock price reached a new 52-week low during trading on Wednesday. The stock traded as low as $3.57 and last traded at $3.5450, with a volume of 1,013,480 shares changing hands. The stock had previously closed at $3.77.

Analyst Ratings Changes

A number of analysts have weighed in on the company. Morgan Stanley restated an "overweight" rating and set a $14.00 target price on shares of VNET Group in a report on Wednesday, August 19th. Weiss Ratings lowered VNET Group from a "sell (d+)" rating to a "sell (d)" rating in a research report on Tuesday, September 1st. Finally, Deutsche Bank Aktiengesellschaft initiated coverage on VNET Group in a research note on Tuesday, July 7th. They set a "buy" rating and a $12.50 price objective for the company. Four research 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. Based on data from MarketBeat, VNET Group has an average rating of "Moderate Buy" and an average target price of $16.90.

VNET Group Stock Performance

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 firm's 50-day simple moving average is $5.76 and its two-hundred day simple moving average is $8.46. The company has a market cap of $972.41 million, a PE ratio of -2.54 and a beta of 0.23.

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) earnings per share for the quarter, missing the consensus estimate of ($0.02) by ($0.04). The firm had revenue of $409.00 million for the quarter, compared to analysts' expectations of $401.77 million. VNET Group had a negative net margin of 22.29% and a negative return on equity of 36.25%. As a group, research analysts anticipate that VNET Group, Inc. - Unsponsored ADR will post -0.48 earnings per share for the current fiscal year.

Institutional Trading of VNET Group

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Leonteq Securities AG acquired a new position in VNET Group in the 1st quarter worth about $25,000. Parallel Advisors LLC grew its holdings in VNET Group by 26.8% in the first quarter. Parallel Advisors LLC now owns 5,495 shares of the information technology services provider's stock valued at $46,000 after purchasing an additional 1,160 shares during the period. Oppenheimer & Co. Inc. acquired a new stake in VNET Group in the third quarter valued at approximately $62,000. Nykredit A S purchased a new stake in shares of VNET Group in the second quarter valued at approximately $89,000. Finally, Lido Advisors LLC purchased a new stake in shares of VNET Group in the first quarter valued at approximately $126,000. Institutional investors and hedge funds own 72.83% of the company's stock.

VNET Group Company Profile

VNET Group, Inc NASDAQ: VNET, formerly known as 21Vianet Group, is a provider of data center and information technology infrastructure services in China. Founded in 1999, the company operates carrier-neutral data centers that allow customers to house servers and other equipment while connecting to multiple telecommunications and internet networks.

VNET's services include data center hosting, cloud computing, managed network services, internet connectivity, content delivery and hybrid cloud solutions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.