VNET Group (NASDAQ:VNET) Shares Gap Up - What's Next?

Key Points

• VNET Group shares jumped 7.4%, opening at $6.90 versus a prior close of $6.52 and last trading near $7.01.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating and an average price target of $16.90, despite one sell rating.
• The company missed quarterly EPS expectations, reporting a $0.06 loss per share versus an expected $0.02 loss; VNET also posted negative net margins and a high debt-to-equity ratio of 4.35.

VNET Group, Inc. - Unsponsored ADR (NASDAQ:VNET - Get Free Report) shares gapped up prior to trading on Monday . The stock had previously closed at $6.52, but opened at $6.90. VNET Group shares last traded at $7.0120, with a volume of 1,767,885 shares.

Wall Street Analyst Weigh In

Several equities analysts recently commented on VNET shares. Jefferies Financial Group reaffirmed a "buy" rating and set a $24.79 target price on shares of VNET Group in a report on Tuesday, May 26th. Morgan Stanley restated an "overweight" rating and set a $14.00 price target on shares of VNET Group in a research report on Wednesday, August 19th. Weiss Ratings downgraded VNET Group from a "sell (d+)" rating to a "sell (d)" rating in a report on Tuesday, September 1st. Bank of America set a $16.30 target price on VNET Group and gave the company a "buy" rating in a research note on Tuesday, May 26th. Finally, Deutsche Bank Aktiengesellschaft assumed coverage on VNET Group in a research report on Tuesday, July 7th. They set a "buy" rating and a $12.50 price target on the stock. Four investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $16.90.

VNET Group Trading Up 7.4%

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 market capitalization of $1.89 billion, a PE ratio of -4.92 and a beta of 0.27. The stock's fifty day moving average price is $6.93 and its two-hundred day moving average price is $8.33.

VNET Group (NASDAQ:VNET - Get Free Report) last released its quarterly earnings results on Wednesday, August 19th. The information technology services provider reported ($0.06) EPS for the quarter, missing analysts' consensus estimates of ($0.02) by ($0.04). The business had revenue of $409.00 million for the quarter, compared to the consensus estimate of $401.77 million. VNET Group had a negative net margin of 22.29% and a negative return on equity of 36.25%. Sell-side analysts anticipate that VNET Group, Inc. - Unsponsored ADR will post -0.27 earnings per share for the current year.

Hedge Funds Weigh In On VNET Group

Hedge funds and other institutional investors have recently modified their holdings of the stock. Tidal Investments LLC lifted its holdings in VNET Group by 255.2% in the second quarter. Tidal Investments LLC now owns 332,025 shares of the information technology services provider's stock worth $2,669,000 after buying an additional 238,541 shares during the period. Engineers Gate Manager LP bought a new position in shares of VNET Group in the 2nd quarter worth approximately $474,000. Squarepoint Ops LLC lifted its stake in shares of VNET Group by 4.8% in the 2nd quarter. Squarepoint Ops LLC now owns 71,893 shares of the information technology services provider's stock valued at $578,000 after purchasing an additional 3,312 shares during the period. Carmignac Gestion lifted its stake in shares of VNET Group by 1,375.1% in the 2nd quarter. Carmignac Gestion now owns 4,760,599 shares of the information technology services provider's stock valued at $38,123,000 after purchasing an additional 4,437,879 shares during the period. Finally, Nykredit A S bought a new stake in shares of VNET Group during the second quarter valued at approximately $89,000. Hedge funds and other institutional investors 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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