VNET Group (NASDAQ:VNET) Stock Falls 7.4% - Here's What Happened

Key Points

• VNET Group shares fell 7.4% to about $4.07 during Friday trading, with volume significantly below the stock’s average daily activity.
• Analyst sentiment is mixed: Wall Street Zen downgraded the stock to “sell,” while Morgan Stanley and Deutsche Bank maintained bullish views. The consensus rating remains “Moderate Buy,” with an average price target of $16.90.
• VNET’s latest quarter showed a wider-than-expected loss of $0.06 per share despite revenue of $409 million, while the company continues to carry high leverage with a debt-to-equity ratio of 4.35.

Shares of VNET Group, Inc. - Unsponsored ADR (NASDAQ:VNET - Get Free Report) were down 7.4% during trading on Friday. The stock traded as low as $4.14 and last traded at $4.0740. 987,180 shares traded hands during mid-day trading, a decline of 84% from the average daily volume of 6,204,576 shares. The stock had previously closed at $4.40.

Analysts Set New Price Targets

VNET has been the subject of several analyst reports. Wall Street Zen lowered shares of VNET Group from a "hold" rating to a "sell" rating in a report on Saturday, June 27th. Morgan Stanley restated an "overweight" rating and issued a $14.00 price target on shares of VNET Group in a research 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. Finally, Deutsche Bank Aktiengesellschaft assumed coverage on shares of VNET Group in a research report on Tuesday, July 7th. They set a "buy" rating and a $12.50 price objective for the company. Four investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $16.90.

VNET Group Trading Down 6.3%

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 has a 50-day moving average of $6.32 and a 200 day moving average of $7.81. The company has a market cap of $1.12 billion, a P/E ratio of -2.90 and a beta of 0.23.

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 business had revenue of $409.00 million for the quarter, compared to analyst estimates of $401.77 million. On average, analysts predict that VNET Group, Inc. - Unsponsored ADR will post -0.48 earnings per share for the current fiscal year.

Institutional Investors Weigh In On VNET Group

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Leonteq Securities AG acquired a new stake in shares of VNET Group in the 1st quarter valued at about $25,000. Parallel Advisors LLC grew its position 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 valued at $46,000 after purchasing an additional 1,160 shares during the period. Nykredit A S acquired a new position in VNET Group during the second quarter worth $89,000. Lido Advisors LLC acquired a new position in shares of VNET Group during the first quarter valued at about $126,000. Finally, Blue Trust Inc. raised its holdings in shares of VNET Group by 38.4% in the 1st quarter. Blue Trust Inc. now owns 17,791 shares of the information technology services provider's stock worth $149,000 after acquiring an additional 4,932 shares during the last quarter. 72.83% of the stock is owned by institutional investors.

About VNET Group

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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