VNET Group (NASDAQ:VNET) Sets New 52-Week Low - Time to Sell?

Key Points

• VNET Group shares fell to a new 52-week low of $3.86, trading below both their 50-day moving average of $6.18 and 200-day moving average of $7.75.
• Analyst sentiment remains mixed but leans bullish overall: the stock has a “Moderate Buy” consensus rating and an average price target of $16.90, substantially above its current price.
• The company reported a quarterly EPS loss of $0.06, missing estimates by $0.04, while recording $409 million in revenue; it also posted negative profitability metrics, including a 22.29% net margin and 36.25% negative return on equity.

VNET Group, Inc. - Unsponsored ADR (NASDAQ:VNET - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Tuesday. The stock traded as low as $3.86 and last traded at $3.88, with a volume of 5,213,798 shares trading hands. The stock had previously closed at $3.92.

Wall Street Analysts Forecast Growth

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

VNET Group Trading Down 1.0%

The firm has a 50 day moving average of $6.18 and a 200 day moving average of $7.75. The firm has a market cap of $1.05 billion, a PE ratio of -2.73 and a beta of 0.23. The company has a quick ratio of 0.97, a current ratio of 0.97 and a debt-to-equity ratio of 4.35.

VNET Group (NASDAQ:VNET - Get Free Report) last released its earnings results on Wednesday, August 19th. The information technology services provider reported ($0.06) earnings per share (EPS) for the quarter, missing analysts' consensus estimates 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. Equities analysts anticipate that VNET Group, Inc. - Unsponsored ADR will post -0.48 earnings per share for the current year.

Institutional Investors Weigh In On VNET Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Leonteq Securities AG bought a new position in VNET Group during the first quarter worth 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 bought a new stake in shares of VNET Group in the second quarter valued at approximately $89,000. Lido Advisors LLC bought a new stake in shares of VNET Group in the first quarter valued at approximately $126,000. Finally, Pictet Asset Management Holding SA bought a new stake in shares of VNET Group in the first quarter valued at approximately $149,000. 72.83% of the stock is currently owned by institutional investors.

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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