VNET Group (NASDAQ:VNET) Shares Gap Up - Time to Buy?

Key Points

• VNET Group's stock price opened at $9.89 after previously closing at $9.59, and last traded at $10.02 with significant trading volume of 1,932,757 shares.
• Bank of America raised its price target for VNET Group from $11.80 to $12.60, while Wall Street Zen downgraded the stock from "hold" to "sell," reflecting mixed sentiment among analysts.
• VNET Group reported a quarterly earnings miss with ($0.01) earnings per share, falling short of the consensus estimate of $0.02, contributing to the company's ongoing evaluation by analysts.

VNET Group, Inc. - Unsponsored ADR (NASDAQ:VNET - Get Free Report) gapped up prior to trading on Wednesday . The stock had previously closed at $9.59, but opened at $9.89. VNET Group shares last traded at $10.02, with a volume of 1,932,757 shares changing hands.

Analyst Ratings Changes

VNET has been the topic of several research reports. Wall Street Zen downgraded VNET Group from a "hold" rating to a "sell" rating in a research report on Saturday, August 23rd. Bank of America boosted their target price on VNET Group from $11.80 to $12.60 and gave the stock a "buy" rating in a research note on Friday, August 22nd. Two analysts have rated the stock with a Strong Buy rating and five have given a Buy rating to the company's stock. According to data from MarketBeat, VNET Group currently has an average rating of "Buy" and a consensus price target of $9.96.

VNET Group Trading Down 3.2%

The business has a fifty day simple moving average of $8.33 and a 200 day simple moving average of $7.39. The stock has a market cap of $2.59 billion, a price-to-earnings ratio of -120.38, a PEG ratio of 6.13 and a beta of 0.16. The company has a debt-to-equity ratio of 2.40, a quick ratio of 0.97 and a current ratio of 0.97.

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

VNET Group announced that its board has initiated a stock 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 buy shares of its stock through open market purchases. Stock buyback programs are typically a sign that the company's leadership believes its shares are undervalued.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in VNET. Norges Bank acquired a new position in VNET Group in the second quarter worth about $54,199,000. Canada Pension Plan Investment Board acquired a new position in VNET Group in the first quarter valued at approximately $27,463,000. Taikang Asset Management Hong Kong Co Ltd acquired a new position in VNET Group in the first quarter valued at approximately $27,210,000. BNP Paribas Financial Markets raised its holdings in shares of VNET Group by 674.8% during the second quarter. BNP Paribas Financial Markets now owns 3,343,088 shares of the information technology services provider's stock valued at $23,067,000 after buying an additional 2,911,604 shares during the last quarter. Finally, Infini Capital Management Ltd raised its holdings in VNET Group by 39.2% during 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. 72.83% of the stock is owned by hedge funds and other 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.