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

Key Points

• VNET Group's share price gapped down from a previous close of $9.41 to an opening price of $8.81, closing at $9.09 with significant trading volume.
• Analysts currently hold a Moderate Buy rating on VNET Group, with prices targets ranging from $11.15 to $12.60, indicating optimistic growth potential despite some mixed ratings.
• The company reported a missed earnings estimate for the last quarter, posting a loss of ($0.01) per share against a consensus of $0.02 per share, while total revenue was significantly below analyst expectations.

VNET Group, Inc. - Unsponsored ADR (NASDAQ:VNET - Get Free Report)'s share price gapped down prior to trading on Tuesday . The stock had previously closed at $9.41, but opened at $8.81. VNET Group shares last traded at $9.09, with a volume of 1,061,716 shares trading hands.

Wall Street Analysts Forecast Growth

VNET has been the topic of several analyst reports. Wall Street Zen upgraded shares of VNET Group from a "sell" rating to a "hold" rating in a research note on Friday, October 3rd. Weiss Ratings reiterated a "sell (d+)" rating on shares of VNET Group in a research note on Wednesday, October 8th. Finally, Bank of America increased their price target 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. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $11.15.

VNET Group Price Performance

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 $2.45 billion, a P/E ratio of -113.81, a P/E/G ratio of 4.91 and a beta of 0.20. The company's 50 day simple moving average is $8.92 and its 200 day simple moving average is $7.37.

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) earnings per share for the quarter, missing the consensus estimate of $0.02 by ($0.03). The company had revenue of $339.65 million during the quarter, compared to analyst estimates of $2.27 billion. VNET Group had a net margin of 0.74% and a return on equity of 0.98%. VNET Group has set its FY 2025 guidance at EPS. As a group, equities analysts forecast that VNET Group, Inc. - Unsponsored ADR will post -0.06 earnings per share for the current year.

VNET Group declared that its board has approved a share repurchase 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 repurchase shares of its stock through open market purchases. Shares buyback programs are usually an indication that the company's board believes its shares are undervalued.

Institutional Investors Weigh In On VNET Group

Several hedge funds and other institutional investors have recently made changes to their positions in VNET. Mirae Asset Global Investments Co. Ltd. grew its holdings in VNET Group by 111.0% during 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 acquiring an additional 42,710 shares during the last quarter. Amundi acquired a new position in shares of VNET Group in the 1st quarter worth approximately $5,093,000. Oppenheimer & Co. Inc. acquired a new position in shares of VNET Group in the 1st quarter worth approximately $207,000. Farther Finance Advisors LLC acquired a new position in shares of VNET Group in the 2nd quarter worth approximately $34,000. Finally, Public Employees Retirement System of Ohio lifted its position in shares of 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 worth $101,000 after purchasing an additional 2,100 shares during the period. 72.83% of the stock is owned by institutional investors.

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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