VNET Group (NASDAQ:VNET) Stock Price Up 6.9% - Here's Why

Key Points

• VNET Group shares rose 6.9% to about $3.97 in Monday trading, although volume was roughly 90% below the average session level.
• Analyst sentiment is mixed but leans positive: four analysts rate the stock Buy, one Hold, and one Sell, producing a consensus “Moderate Buy” rating and a $16.90 target price.
• The company reported a quarterly EPS loss of $0.06, missing estimates by $0.04, despite revenue of $409 million exceeding expectations; VNET remains unprofitable, with a negative net margin of 22.29%.

VNET Group, Inc. - Unsponsored ADR (NASDAQ:VNET - Get Free Report) shot up 6.9% during trading on Monday. The stock traded as high as $3.87 and last traded at $3.9660. Approximately 613,477 shares traded hands during mid-day trading, a decline of 90% from the average session volume of 6,218,329 shares. The stock had previously closed at $3.71.

Wall Street Analyst Weigh In

VNET has been the subject of a number of research reports. 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 initiated coverage on shares of VNET Group in a report on Tuesday, July 7th. They set a "buy" rating and a $12.50 target price on the stock. Finally, Morgan Stanley reiterated an "overweight" rating and set a $14.00 price objective on shares of VNET Group in a research report on Wednesday, August 19th. Four analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $16.90.

VNET Group Trading Up 7.1%

The firm has a 50-day moving average price of $5.89 and a 200-day moving average price of $7.63. The stock has a market capitalization of $1.08 billion, a PE ratio of -2.79 and a beta of 0.23. The company has a current ratio of 0.97, a quick ratio of 0.97 and a debt-to-equity ratio of 4.35.

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

Institutional Trading of VNET Group

A number of institutional investors and hedge funds have recently modified their holdings of the business. The Manufacturers Life Insurance Company boosted its stake in shares of VNET Group by 20.4% during the 1st quarter. The Manufacturers Life Insurance Company now owns 2,623,594 shares of the information technology services provider's stock worth $22,012,000 after acquiring an additional 443,656 shares during the last quarter. FACT Capital LP purchased a new stake in shares of VNET Group during the 1st quarter worth approximately $4,012,000. Infini Capital Management Ltd purchased a new stake in VNET Group during the second quarter valued at $38,883,000. Janus Henderson Group PLC purchased a new stake in shares of VNET Group during the 1st quarter valued at about $1,809,000. Finally, Regal Partners Ltd bought a new stake in VNET Group during the first quarter worth approximately $3,095,000. 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 provider of data center and information technology infrastructure services in China. Founded in 1999, the company operates carrier-neutral data centers that allow customers to house servers and other equipment while connecting to multiple telecommunications and internet networks.

VNET's services include data center hosting, cloud computing, managed network services, internet connectivity, content delivery and hybrid cloud solutions.

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