VNET Group (NASDAQ:VNET) Shares Down 3.2% - What's Next?

Key Points

• VNET Group's shares dropped 3.2%, falling from a previous closing price of $10.05 to $9.73, amid a significant decrease in trading volume.
• Analysts have mixed opinions on VNET's stock, with Bank of America raising its target price to $12.60 and maintaining a "buy" rating, while Wall Street Zen downgraded the stock to "sell."
• VNET Group reported missing earnings estimates with a quarterly EPS of ($0.01), compared to the expected $0.02, and has set a guidance of -$0.06 EPS for the current fiscal year.

VNET Group, Inc. - Unsponsored ADR (NASDAQ:VNET - Get Free Report) fell 3.2% during trading on Tuesday . The company traded as low as $9.50 and last traded at $9.73. 1,281,659 shares traded hands during mid-day trading, a decline of 83% from the average session volume of 7,757,831 shares. The stock had previously closed at $10.05.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on VNET. Bank of America lifted their target price on VNET Group from $11.80 to $12.60 and gave the company a "buy" rating in a research note on Friday, August 22nd. Wall Street Zen lowered VNET Group from a "hold" rating to a "sell" rating in a report on Saturday, August 23rd. Two equities research analysts have rated the stock with a Strong Buy rating and five have given a Buy rating to the stock. According to MarketBeat, VNET Group currently has a consensus rating of "Buy" and a consensus target price of $9.96.

VNET Group Stock Performance

The business's 50-day moving average price is $8.37 and its 200-day moving average price is $7.34. 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 stock has a market cap of $2.48 billion, a PE ratio of -115.44, a P/E/G ratio of 6.13 and a beta of 0.16.

VNET Group (NASDAQ:VNET - Get Free Report) last issued its quarterly earnings data 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). VNET Group had a return on equity of 0.98% and a net margin of 0.74%.The firm had revenue of $339.65 million during the quarter, compared to analysts' expectations of $2.27 billion. VNET Group has set its FY 2025 guidance at EPS. As a group, equities research analysts expect that VNET Group, Inc. - Unsponsored ADR will post -0.06 earnings per share for the current fiscal year.

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

Institutional Trading of VNET Group

Several large investors have recently bought and sold shares of the stock. Infini Capital Management Ltd grew its position in VNET Group by 39.2% during the 2nd 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 last quarter. Orion Porfolio Solutions LLC purchased a new stake in shares of VNET Group in the 2nd quarter valued at $140,000. Liontrust Investment Partners LLP boosted its holdings in shares of 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 acquiring an additional 14,593 shares during the last quarter. Nomura Holdings Inc. boosted its holdings in shares of 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 acquiring an additional 8,964 shares during the last quarter. Finally, Headlands Technologies LLC purchased a new stake in shares of VNET Group in the 2nd quarter valued at $55,000. Hedge funds and other institutional investors 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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