VNET Group (NASDAQ:VNET) Share Price Passes Above 200 Day Moving Average - Here's Why

Key Points

• VNET Group's share price has surpassed its 200-day moving average of $7.34, reaching a high of $10.37 on Monday, and last trading at $10.05 with a significant trading volume of over 8 million shares.
• Analysts have mixed views on the stock, with Bank of America increasing its target price to $12.60 while Wall Street Zen downgraded it from a "hold" to a "sell," resulting in a consensus rating of "Buy" with an average target of $9.96.
• VNET Group reported disappointing quarterly earnings, missing estimates with a loss per share of ($0.01) and $339.65 million in revenue, leading analysts to anticipate a net loss for the current year.

VNET Group, Inc. - Unsponsored ADR (NASDAQ:VNET - Get Free Report)'s stock price passed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $7.34 and traded as high as $10.37. VNET Group shares last traded at $10.05, with a volume of 8,362,511 shares trading hands.

Analyst Ratings Changes

Several analysts have recently commented on the company. Bank of America increased 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. Wall Street Zen cut VNET Group from a "hold" rating to a "sell" rating in a report on Saturday, August 23rd. Two analysts have rated the stock with a Strong Buy rating and five have issued a Buy rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Buy" and an average price target of $9.96.

VNET Group Stock Up 4.4%

The firm has a 50 day simple moving average of $8.37 and a two-hundred day simple moving average of $7.34. The company has a debt-to-equity ratio of 2.40, a current ratio of 0.97 and a quick ratio of 0.97. The stock has a market cap of $2.70 billion, a price-to-earnings ratio of -125.63, a price-to-earnings-growth ratio of 6.13 and a beta of 0.16.

VNET Group (NASDAQ:VNET - Get Free Report) last released its quarterly earnings results on Thursday, August 21st. The information technology services provider reported ($0.01) EPS for the quarter, missing analysts' consensus estimates of $0.02 by ($0.03). The business had revenue of $339.65 million for the quarter, compared to analyst estimates of $2.27 billion. VNET Group had a return on equity of 0.98% and a net margin of 0.74%. VNET Group has set its FY 2025 guidance at EPS. As a group, sell-side analysts expect that VNET Group, Inc. - Unsponsored ADR will post -0.06 EPS for the current year.

VNET Group announced that its board has approved a share buyback program on Friday, June 27th that allows the company to buyback $0.00 in outstanding shares. This buyback authorization allows the information technology services provider to reacquire shares of its stock through open market purchases. Shares buyback programs are usually an indication that the company's board of directors believes its stock is undervalued.

Institutional Investors Weigh In On VNET Group

A number of hedge funds have recently modified their holdings of the business. Infini Capital Management Ltd raised its position in shares of VNET Group by 39.2% during the second quarter. Infini Capital Management Ltd now owns 9,758,083 shares of the information technology services provider's stock worth $67,331,000 after purchasing an additional 2,747,661 shares during the period. Orion Porfolio Solutions LLC acquired a new stake in shares of VNET Group during the second quarter worth about $140,000. Liontrust Investment Partners LLP raised its position in VNET Group by 152.5% in the 2nd quarter. Liontrust Investment Partners LLP now owns 24,165 shares of the information technology services provider's stock valued at $167,000 after buying an additional 14,593 shares during the last quarter. Nomura Holdings Inc. raised its position in VNET Group by 28.1% in the 2nd quarter. Nomura Holdings Inc. now owns 40,919 shares of the information technology services provider's stock valued at $282,000 after buying an additional 8,964 shares during the last quarter. Finally, Headlands Technologies LLC acquired a new stake in VNET Group in the 2nd quarter valued at approximately $55,000. Institutional investors and hedge funds own 72.83% of the company's stock.

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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