VNET Group (NASDAQ:VNET) Sets New 12-Month Low - Here's Why

Key Points

• VNET Group shares hit a new 52-week low, falling to about $5.08 from a prior close of $5.39. The stock trades below both its 50-day and 200-day moving averages.
• Analyst opinions are mixed: Deutsche Bank and Morgan Stanley remain bullish, while Weiss Ratings and Wall Street Zen downgraded the stock to “sell.” Despite this, the overall consensus is “Moderate Buy” with an average price target of $16.90.
• VNET’s latest quarterly results missed earnings expectations, reporting a loss of $0.06 per share versus the projected $0.02 loss, although revenue exceeded estimates. The company continues to show negative profitability, including a 22.29% net margin and 36.25% negative return on equity.

VNET Group, Inc. - Unsponsored ADR (NASDAQ:VNET - Get Free Report) shares reached a new 52-week low on Thursday. The company traded as low as $5.08 and last traded at $5.0750, with a volume of 2762144 shares. The stock had previously closed at $5.39.

Analyst Ratings Changes

Several equities analysts have recently issued reports on VNET shares. Weiss Ratings lowered shares of VNET Group from a "sell (d+)" rating to a "sell (d)" rating in a report on Tuesday, September 1st. Deutsche Bank Aktiengesellschaft began coverage on VNET Group in a report on Tuesday, July 7th. They set a "buy" rating and a $12.50 price objective for the company. Wall Street Zen cut shares of VNET Group from a "hold" rating to a "sell" rating in a report on Saturday, June 27th. Finally, Morgan Stanley reaffirmed an "overweight" rating and set a $14.00 price target on shares of VNET Group in a research report on Wednesday, August 19th. Four investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $16.90.

VNET Group Stock Performance

The company has a quick ratio of 0.97, a current ratio of 0.97 and a debt-to-equity ratio of 4.35. The company has a 50 day simple moving average of $6.57 and a 200 day simple moving average of $7.97. The stock has a market cap of $1.38 billion, a price-to-earnings ratio of -3.59 and a beta of 0.23.

VNET Group (NASDAQ:VNET - Get Free Report) last posted 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). The business had revenue of $409.00 million during the quarter, compared to the consensus estimate of $401.77 million. VNET Group had a negative return on equity of 36.25% and a negative net margin of 22.29%. As a group, equities research analysts forecast that VNET Group, Inc. - Unsponsored ADR will post -0.48 EPS for the current year.

Institutional Investors Weigh In On VNET Group

Several institutional investors have recently bought and sold shares of the stock. Leonteq Securities AG purchased a new stake in VNET Group in the 1st quarter valued at about $25,000. Parallel Advisors LLC increased its stake in shares of 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 worth $46,000 after purchasing an additional 1,160 shares in the last quarter. Nykredit A S purchased a new stake in shares of VNET Group during the 2nd quarter valued at approximately $89,000. Lido Advisors LLC bought a new position in VNET Group in the 1st quarter worth approximately $126,000. Finally, Blue Trust Inc. grew its position in shares of VNET Group by 38.4% in the first quarter. Blue Trust Inc. now owns 17,791 shares of the information technology services provider's stock valued at $149,000 after purchasing an additional 4,932 shares in the last quarter. Institutional investors own 72.83% of the company's stock.

VNET Group Company Profile

VNET Group, Inc NASDAQ: VNET is a carrier- and cloud-neutral data center services provider in China. The company develops and operates internet data centers that support the hosting, connectivity, and technology infrastructure needs of businesses, government organizations, cloud service providers, and internet companies.

Its services include data center colocation, cloud computing, managed network services, and other information technology infrastructure solutions. VNET's facilities are designed to provide customers with secure space, power, connectivity, and related operational support for servers and other mission-critical systems.

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