VNET Group, Inc. - Unsponsored ADR (NASDAQ:VNET) Receives Consensus Recommendation of "Buy" from Analysts

Key Points

• VNET Group, Inc. has received a consensus recommendation of "Buy" from seven brokerages, with a target price of $9.96 over the next 12 months.
• Institutional investors significantly increased their holdings in VNET Group, with Mirae Asset Global Investments growing its position by 111.0% in the first quarter.
• The company reported a quarterly loss of ($0.01) per share, missing analysts' estimates, with revenues totaling $339.65 million, far below expectations of $2.27 billion.

Shares of VNET Group, Inc. - Unsponsored ADR (NASDAQ:VNET - Get Free Report) have earned an average recommendation of "Buy" from the seven analysts that are covering the stock, Marketbeat reports. Five equities research analysts have rated the stock with a buy rating and two have issued a strong buy rating on the company. The average 1-year price objective among brokerages that have issued ratings on the stock in the last year is $9.96.

A number of brokerages have commented on VNET. Wall Street Zen cut shares of VNET Group from a "hold" rating to a "sell" rating in a research report on Saturday, August 23rd. Bank of America upped their price target on shares of VNET Group from $11.80 to $12.60 and gave the company a "buy" rating in a research report on Friday, August 22nd.

VNET Group Trading Up 0.8%

NASDAQ VNET traded up $0.06 on Friday, reaching $8.12. The company had a trading volume of 1,655,209 shares, compared to its average volume of 7,779,075. The firm has a market cap of $2.18 billion, a price-to-earnings ratio of -101.48, a P/E/G ratio of 6.02 and a beta of 0.16. VNET Group has a fifty-two week low of $2.66 and a fifty-two week high of $16.13. The business has a 50 day moving average of $7.88 and a two-hundred day moving average of $7.72. The company has a debt-to-equity ratio of 2.40, a current ratio of 0.97 and a quick ratio of 0.97.

VNET Group (NASDAQ:VNET - Get Free Report) last posted its quarterly earnings data on Thursday, August 21st. The information technology services provider reported ($0.01) earnings per share for the quarter, missing analysts' consensus estimates of $0.02 by ($0.03). The company had revenue of $339.65 million during the quarter, compared to analyst estimates of $2.27 billion. VNET Group had a net margin of 0.74% and a return on equity of 0.98%. VNET Group has set its FY 2025 guidance at EPS. Analysts forecast that VNET Group will post -0.06 EPS for the current year.

VNET Group declared that its Board of Directors has authorized a stock buyback plan on Friday, June 27th that allows the company to repurchase $0.00 in outstanding shares. This repurchase authorization allows the information technology services provider to buy shares of its stock through open market purchases. Shares repurchase plans are often an indication that the company's board believes its shares are undervalued.

Hedge Funds Weigh In On VNET Group

Large investors have recently added to or reduced their stakes in the business. Triata Capital Ltd purchased a new stake in VNET Group in the 4th quarter valued at about $47,377,000. Norges Bank bought a new stake in shares of VNET Group in the 2nd quarter worth approximately $54,199,000. Canada Pension Plan Investment Board bought a new stake in shares of VNET Group in the 1st quarter worth approximately $27,463,000. Taikang Asset Management Hong Kong Co Ltd bought a new stake in shares of VNET Group in the 1st quarter worth approximately $27,210,000. Finally, BNP Paribas Financial Markets raised its holdings in shares of VNET Group by 674.8% in the 2nd quarter. BNP Paribas Financial Markets now owns 3,343,088 shares of the information technology services provider's stock worth $23,067,000 after purchasing an additional 2,911,604 shares during the period. Institutional investors own 72.83% of the company's stock.

About VNET Group

VNET Group, Inc, an investment holding company, provides hosting and related services in China. It offers managed hosting services consisting of managed retail services, such as colocation services that dedicate data center space to house customers' servers and networking equipment, as well as allow customers to lease partial or entire cabinets for their servers; interconnectivity services that allow customers to connect their servers; value-added services, including hybrid IT, bare metal, firewall, server load balancing, data backup and recovery, data center management, server management, and backup server services; cloud services that allow customers to run applications over the internet using IT infrastructure; and VPN Services that extend customers' private networks by setting up connections through the public internet.