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

Key Points

• VNET Group's shares gapped down significantly from $11.13 to $10.72 before closing at $10.60, driven by concerns over recent earnings performance.
• Analyst ratings show a mixed outlook, with Bank of America upgrading the stock to a "buy" and Wall Street Zen downgrading it to "sell," resulting in an average rating of "buy" with a target price of $9.96.
• VNET Group reported a quarterly EPS loss of ($0.01) against expectations of $0.02, alongside a notable revenue miss compared to estimates, causing concerns among investors.

VNET Group, Inc. - Unsponsored ADR (NASDAQ:VNET - Get Free Report) shares gapped down before the market opened on Friday . The stock had previously closed at $11.13, but opened at $10.72. VNET Group shares last traded at $10.60, with a volume of 4,139,152 shares.

Analyst Ratings Changes

VNET has been the subject of a number of analyst reports. Bank of America boosted their price objective on shares of VNET Group from $11.80 to $12.60 and gave the company a "buy" rating in a report on Friday, August 22nd. Wall Street Zen cut shares of 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 assigned a Buy rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Buy" and an average target price of $9.96.

VNET Group Price Performance

The company has a market capitalization of $2.95 billion, a P/E ratio of -137.08, a price-to-earnings-growth ratio of 13.21 and a beta of 0.16. The company's 50-day moving average price is $8.46 and its two-hundred day moving average price is $7.38. The company has a debt-to-equity ratio of 2.40, a current ratio of 0.97 and a quick ratio of 0.97.

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 the consensus estimate 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 of Directors has approved a share buyback plan on Friday, June 27th that allows the company to buyback $0.00 in shares. This buyback authorization allows the information technology services provider to reacquire shares of its stock through open market purchases. Stock buyback plans are generally a sign that the company's management believes its stock is undervalued.

Institutional Trading of VNET Group

A number of hedge funds and other institutional investors have recently bought and sold shares of VNET. Cetera Investment Advisers purchased a new position in VNET Group during the 4th quarter worth $102,000. Two Sigma Investments LP purchased a new position in VNET Group during the 4th quarter worth $2,911,000. Squarepoint Ops LLC purchased a new position in VNET Group during the 4th quarter worth $132,000. Oppenheimer & Co. Inc. purchased a new position in shares of VNET Group in the 1st quarter worth about $207,000. Finally, Mirae Asset Global Investments Co. Ltd. boosted its holdings in shares of VNET Group by 111.0% in the 1st 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. 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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