VNET Group (NASDAQ:VNET) Shares Gap Up - Here's What Happened

Key Points

• VNET Group's stock price opened at $11.33 after closing at $10.76, indicating increased trading activity with a volume of 2,359,910 shares.
• The company's quarterly earnings report showed a miss on estimates, with earnings per share reported at ($0.01) against a consensus expectation of $0.02, and revenues falling short with $339.65 million compared to projected $2.27 billion.
• Analysts have mixed opinions on VNET Group, with a consensus rating of "Buy", while Bank of America raised its price target from $11.80 to $12.60, despite two analysts issuing a strong sell rating.

VNET Group, Inc. - Unsponsored ADR (NASDAQ:VNET - Get Free Report)'s stock price gapped up prior to trading on Thursday . The stock had previously closed at $10.76, but opened at $11.33. VNET Group shares last traded at $11.15, with a volume of 2,359,910 shares changing hands.

Wall Street Analysts Forecast Growth

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

VNET Group Stock Performance

The stock has a market capitalization of $3.00 billion, a price-to-earnings ratio of -139.31, a PEG ratio of 5.96 and a beta of 0.19. The company has a quick ratio of 0.97, a current ratio of 0.97 and a debt-to-equity ratio of 2.40. The firm has a fifty day moving average of $8.62 and a 200-day moving average of $7.36.

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 (EPS) for the quarter, missing the consensus estimate of $0.02 by ($0.03). The firm 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 anticipate that VNET Group, Inc. - Unsponsored ADR will post -0.06 EPS for the current year.

VNET Group declared that its board has approved a stock buyback plan on Friday, June 27th that allows the company to repurchase $0.00 in shares. This repurchase authorization allows the information technology services provider to purchase shares of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's management believes its stock is undervalued.

Hedge Funds Weigh In On VNET Group

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Norges Bank acquired a new stake in VNET Group in the 2nd quarter valued at $54,199,000. Canada Pension Plan Investment Board acquired a new stake in shares of VNET Group during the first quarter worth approximately $27,463,000. Taikang Asset Management Hong Kong Co Ltd acquired a new position in VNET Group during the 1st quarter worth $27,210,000. BNP Paribas Financial Markets grew its holdings in VNET Group by 674.8% during the 2nd quarter. BNP Paribas Financial Markets now owns 3,343,088 shares of the information technology services provider's stock worth $23,067,000 after acquiring an additional 2,911,604 shares in the last quarter. Finally, Infini Capital Management Ltd grew its stake in VNET Group by 39.2% in 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 in the last quarter. 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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