VNET Group, Inc. - Unsponsored ADR (NASDAQ:VNET) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analysts give VNET a “Moderate Buy” consensus: Four of six analysts rate the stock a buy, while one rates it hold and one sell. The average 12-month price target is $17.40, well above the reported $7.33 share price.
• VNET missed quarterly earnings expectations: The company reported an adjusted loss of $1.20 per share versus the consensus loss estimate of $0.03, despite revenue of $390.32 million exceeding estimates.
• Investor ownership remains substantial, but an insider reduced holdings: Institutions and hedge funds own 72.83% of the stock, while director Sean Shao sold 60,000 shares, reducing his position by 5.75%.

VNET Group, Inc. - Unsponsored ADR (NASDAQ:VNET - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the six analysts that are covering the firm, MarketBeat.com reports. One analyst has rated the stock with a sell rating, one has assigned a hold rating and four have issued a buy rating on the company. The average 1 year price objective among brokers that have issued ratings on the stock in the last year is $17.3975.

Several analysts recently issued reports on the stock. Zacks Research raised shares of VNET Group from a "strong sell" rating to a "hold" rating in a report on Wednesday, May 27th. Morgan Stanley reiterated an "overweight" rating and issued a $16.00 target price on shares of VNET Group in a report on Wednesday, May 27th. Bank of America set a $16.30 target price on shares of VNET Group and gave the stock a "buy" rating in a research report on Tuesday, May 26th. Jefferies Financial Group reaffirmed a "buy" rating and issued a $24.79 price target on shares of VNET Group in a research report on Tuesday, May 26th. Finally, Wall Street Zen downgraded VNET Group from a "hold" rating to a "sell" rating in a research report on Saturday, June 27th.

Insiders Place Their Bets

In other VNET Group news, Director Sean Shao sold 60,000 shares of the firm's stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $1.71, for a total value of $102,600.00. Following the sale, the director owned 983,820 shares of the company's stock, valued at $1,682,332.20. This trade represents a 5.75% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. 12.10% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Leonteq Securities AG acquired a new stake in shares of VNET Group in the first quarter worth $25,000. Global Retirement Partners LLC acquired a new position in VNET Group during the 4th quarter valued at $27,000. EverSource Wealth Advisors LLC boosted its holdings in VNET Group by 52.2% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 4,157 shares of the information technology services provider's stock valued at $29,000 after purchasing an additional 1,426 shares during the period. Parallel Advisors LLC boosted its holdings 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. Finally, Allianz SE acquired a new stake in VNET Group in the 4th quarter worth $50,000. 72.83% of the stock is currently owned by institutional investors and hedge funds.

VNET Group Stock Up 4.6%

VNET opened at $7.33 on Friday. The firm has a market cap of $1.98 billion, a P/E ratio of -5.35 and a beta of 0.32. The company has a debt-to-equity ratio of 3.99, a quick ratio of 0.99 and a current ratio of 0.99. The business has a 50 day moving average price of $8.16 and a 200 day moving average price of $9.38. VNET Group has a twelve month low of $6.17 and a twelve month high of $14.48.

VNET Group (NASDAQ:VNET - Get Free Report) last announced its quarterly earnings results on Tuesday, May 26th. The information technology services provider reported ($1.20) EPS for the quarter, missing the consensus estimate of ($0.03) by ($1.17). VNET Group had a negative net margin of 22.01% and a negative return on equity of 31.59%. The company had revenue of $390.32 million for the quarter, compared to analyst estimates of $388.47 million. Research analysts forecast that VNET Group will post -0.24 EPS for the current year.

About VNET Group

VNET Group, Inc NASDAQ: VNET is a leading carrier-neutral internet data center (IDC) services provider in China. Established in 1999 and headquartered in Beijing, the company delivers a full spectrum of infrastructure solutions that support the growing digital economy. Its core offerings include data center colocation, managed hosting, network connectivity, and disaster recovery services designed to meet the performance and reliability requirements of enterprise and internet content customers.

The company's product portfolio spans private cloud, public cloud and hybrid cloud deployments, enabling clients to scale computing resources on demand.

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