VNET Group (NASDAQ:VNET) Cut to Sell at Wall Street Zen

Key Points

• VNET Group has been downgraded from a "hold" to a "sell" rating by analysts at Wall Street Zen, indicating a shift in sentiment regarding the stock's performance.
• Despite the downgrade, Bank of America has raised its target price on VNET Group from $11.80 to $12.60, maintaining a "buy" rating, which reflects mixed analyst opinions on the stock.
• The company reported a loss of ($0.01) earnings per share for the last quarter, falling short of the consensus estimate, and has set a challenging forecast for the current fiscal year.

VNET Group (NASDAQ:VNET - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued to investors on Saturday.

Several other equities research analysts have also weighed in on the company. Bank of America boosted their target price on VNET Group from $11.80 to $12.60 and gave the stock a "buy" rating in a report on Friday, August 22nd. Weiss Ratings restated a "sell (d+)" rating on shares of VNET Group in a report on Friday. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, VNET Group has a consensus rating of "Moderate Buy" and a consensus target price of $11.15.

VNET Group Trading Up 2.4%

Shares of NASDAQ VNET opened at $9.62 on Friday. The stock has a market cap of $2.59 billion, a price-to-earnings ratio of -120.25, a PEG ratio of 5.41 and a beta of 0.20. The business has a 50 day simple moving average of $9.15 and a 200 day simple moving average of $7.49. VNET Group has a 52 week low of $3.25 and a 52 week high of $16.13. The company has a debt-to-equity ratio of 2.40, a quick ratio of 0.97 and a current ratio of 0.97.

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

VNET Group declared that its Board of Directors has approved a share repurchase program on Friday, June 27th that allows the company to buyback $0.00 in shares. This buyback authorization allows the information technology services provider to repurchase shares of its stock through open market purchases. Stock buyback programs are usually an indication that the company's leadership believes its shares are undervalued.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Mirae Asset Global Investments Co. Ltd. lifted its holdings in shares of VNET Group by 111.0% during the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 81,197 shares of the information technology services provider's stock worth $670,000 after buying an additional 42,710 shares during the last quarter. Amundi bought a new stake in VNET Group in the 1st quarter valued at $5,093,000. Oppenheimer & Co. Inc. bought a new stake in VNET Group in the 1st quarter valued at $207,000. Farther Finance Advisors LLC bought a new stake in VNET Group in the 2nd quarter valued at $34,000. Finally, Public Employees Retirement System of Ohio increased its holdings in VNET Group by 16.8% in the 2nd quarter. Public Employees Retirement System of Ohio now owns 14,600 shares of the information technology services provider's stock valued at $101,000 after buying an additional 2,100 shares during the period. 72.83% of the stock is currently owned by institutional investors and hedge funds.

VNET Group Company Profile

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.

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