VNET Group (NASDAQ:VNET) Shares Down 3.1% - Here's Why

Key Points

• VNET Group's shares fell 3.1% to $10.90, with a significant decline in trading volume, down 91% from the average.
• Analyst ratings are mixed; Bank of America upgraded the stock to a "buy" with a target price of $12.60 while Wall Street Zen downgraded it to a "sell."
• In its last quarterly earnings report, VNET Group missed EPS expectations significantly, reporting ($0.01) against a consensus of $0.02.

VNET Group, Inc. - Unsponsored ADR (NASDAQ:VNET - Get Free Report)'s share price was down 3.1% on Friday . The company traded as low as $10.62 and last traded at $10.90. Approximately 690,972 shares traded hands during trading, a decline of 91% from the average daily volume of 7,843,599 shares. The stock had previously closed at $11.24.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on VNET shares. Bank of America upped their price objective on VNET Group from $11.80 to $12.60 and gave the stock a "buy" rating in a research note on Friday, August 22nd. Wall Street Zen lowered shares of VNET Group from a "hold" rating to a "sell" rating in a research report on Saturday, August 23rd. Finally, Weiss Ratings reissued a "sell (d+)" rating on shares of VNET Group in a research report on Saturday, September 27th. Two analysts have rated the stock with a Strong Buy rating, five have given a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, VNET Group presently has a consensus rating of "Buy" and a consensus target price of $9.96.

VNET Group Stock Down 5.9%

The stock has a market capitalization of $2.85 billion, a PE ratio of -132.25, a price-to-earnings-growth ratio of 6.20 and a beta of 0.19. The company has a current ratio of 0.97, a quick ratio of 0.97 and a debt-to-equity ratio of 2.40. The company's 50-day moving average is $8.68 and its 200 day moving average is $7.36.

VNET Group (NASDAQ:VNET - Get Free Report) last posted its quarterly earnings results on Thursday, August 21st. The information technology services provider reported ($0.01) earnings per share (EPS) 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 analysts' expectations 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, analysts anticipate that VNET Group, Inc. - Unsponsored ADR will post -0.06 EPS for the current year.

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

Institutional Trading of VNET Group

Several institutional investors and hedge funds have recently bought and sold shares of VNET. EverSource Wealth Advisors LLC raised its holdings in shares of VNET Group by 52.2% during the second quarter. EverSource Wealth Advisors LLC now owns 4,157 shares of the information technology services provider's stock worth $29,000 after purchasing an additional 1,426 shares during the last quarter. Quantbot Technologies LP purchased a new position in VNET Group during the first quarter valued at approximately $36,000. FNY Investment Advisers LLC purchased a new position in VNET Group during the second quarter valued at approximately $32,000. Summit Securities Group LLC purchased a new position in shares of VNET Group during the 1st quarter valued at approximately $40,000. Finally, Farther Finance Advisors LLC purchased a new position in shares of VNET Group during the 2nd quarter valued at approximately $34,000. 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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