VNET Group (NASDAQ:VNET) Reaches New 52-Week Low - Here's Why

Key Points

• VNET Group shares hit a new 52-week low, falling to $5.91 before last trading near $6.01, well below the 50-day and 200-day moving averages.
• Analysts maintain a generally positive outlook, with four Buy ratings, one Hold and one Sell; the average price target is $16.90, substantially above the current share price.
• The company’s latest quarter showed mixed results: revenue of $409 million exceeded expectations, but adjusted EPS of negative $0.06 missed estimates, while VNET reported negative margins and a high debt-to-equity ratio.

VNET Group, Inc. - Unsponsored ADR (NASDAQ:VNET - Get Free Report)'s stock price hit a new 52-week low during trading on Wednesday . The stock traded as low as $5.91 and last traded at $6.0120, with a volume of 61351 shares traded. The stock had previously closed at $5.96.

Analysts Set New Price Targets

Several research firms have weighed in on VNET. Bank of America set a $16.30 target price on VNET Group and gave the company a "buy" rating in a report on Tuesday, May 26th. 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 cut shares of VNET Group from a "sell (d+)" rating to a "sell (d)" rating in a research report on Tuesday, September 1st. Zacks Research raised shares of VNET Group from a "strong sell" rating to a "hold" rating in a report on Wednesday, May 27th. Finally, Deutsche Bank Aktiengesellschaft initiated coverage on shares of VNET Group in a research report on Tuesday, July 7th. They issued a "buy" rating and a $12.50 price target on the stock. Four 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. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $16.90.

VNET Group Stock Performance

The company has a market capitalization of $1.64 billion, a PE ratio of -4.25 and a beta of 0.27. The company has a debt-to-equity ratio of 4.35, a quick ratio of 0.97 and a current ratio of 0.97. The stock's fifty day simple moving average is $7.05 and its 200-day simple moving average is $8.43.

VNET Group (NASDAQ:VNET - Get Free Report) last released its earnings results on Wednesday, August 19th. The information technology services provider reported ($0.06) EPS 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 firm had revenue of $409.00 million during the quarter, compared to analysts' expectations of $401.77 million. As a group, equities analysts predict that VNET Group, Inc. - Unsponsored ADR will post -0.27 earnings per share for the current year.

Hedge Funds Weigh In On VNET Group

Institutional investors and hedge funds have recently bought and sold shares of the stock. Sei Investments Co. increased its holdings in shares of VNET Group by 3.0% in the 1st quarter. Sei Investments Co. now owns 37,602 shares of the information technology services provider's stock worth $316,000 after acquiring an additional 1,098 shares during the period. Parallel Advisors LLC grew its holdings in VNET Group by 26.8% in the 1st quarter. Parallel Advisors LLC now owns 5,495 shares of the information technology services provider's stock worth $46,000 after buying an additional 1,160 shares in the last quarter. Personal CFO Solutions LLC grew its holdings in VNET Group by 4.6% in the 1st quarter. Personal CFO Solutions LLC now owns 37,199 shares of the information technology services provider's stock worth $312,000 after buying an additional 1,637 shares in the last quarter. Main Management ETF Advisors LLC increased its position in VNET Group by 1.0% in the 4th quarter. Main Management ETF Advisors LLC now owns 183,222 shares of the information technology services provider's stock valued at $1,550,000 after acquiring an additional 1,872 shares during the period. Finally, Leonteq Securities AG acquired a new stake in VNET Group in the 1st quarter valued at approximately $25,000. 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 China-based provider of data center and information technology infrastructure services. The company operates carrier-neutral data centers that support enterprise customers, cloud service providers, internet companies, financial institutions and other organizations requiring secure, reliable computing and network capacity.

Its services include data center hosting and colocation, managed network services, cloud computing infrastructure, internet connectivity, content delivery and related information technology solutions.

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