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

Key Points

• VNET Group's stock price gapped up from $7.93 to $8.39 at market open, with shares last trading at $9.06 and a trading volume of 1,449,270 shares.
• Analysts have varying opinions on VNET Group, with Bank of America raising its price target to $12.60, while Wall Street Zen downgraded it to a "sell," reflecting a consensus "buy" rating with an average target price of $9.96.
• The company recently reported earnings per share of -$0.01, missing estimates, and has set its FY 2025 guidance at a projected EPS of -$0.06.

VNET Group, Inc. - Unsponsored ADR (NASDAQ:VNET - Get Free Report)'s stock price gapped up before the market opened on Thursday . The stock had previously closed at $7.93, but opened at $8.39. VNET Group shares last traded at $9.06, with a volume of 1,449,270 shares.

Analysts Set New Price Targets

VNET has been the subject of a number of research analyst reports. Bank of America upped their price objective on shares of VNET Group from $11.80 to $12.60 and gave the stock a "buy" rating in a research report on Friday, August 22nd. Wall Street Zen cut shares of VNET Group from a "hold" rating to a "sell" rating in a research report on Saturday, August 23rd. Two equities research analysts have rated the stock with a Strong Buy rating and five have issued a Buy rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Buy" and an average target price of $9.96.

VNET Group Trading Up 18.0%

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 stock has a market capitalization of $2.52 billion, a price-to-earnings ratio of -117.31, a PEG ratio of 5.79 and a beta of 0.16. The company's 50-day moving average is $8.04 and its 200-day moving average is $7.54.

VNET Group (NASDAQ:VNET - Get Free Report) last announced its 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 for the quarter, compared to analysts' expectations 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. Research analysts anticipate that VNET Group, Inc. - Unsponsored ADR will post -0.06 earnings per share for the current fiscal 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 buy shares of its stock through open market purchases. Shares repurchase plans are usually an indication that the company's board believes its stock is undervalued.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Infini Capital Management Ltd boosted its stake in shares of 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 valued at $67,331,000 after purchasing an additional 2,747,661 shares during the period. Orion Porfolio Solutions LLC acquired a new stake in VNET Group in the second quarter valued at approximately $140,000. Liontrust Investment Partners LLP raised its holdings in VNET Group by 152.5% in the second 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 in the last quarter. Nomura Holdings Inc. raised its holdings in VNET Group by 28.1% in the second 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 in the last quarter. Finally, Headlands Technologies LLC acquired a new stake in VNET Group in the second quarter valued at approximately $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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.