VNET Group (NASDAQ:VNET) Stock Passes Above Two Hundred Day Moving Average - What's Next?

Key Points

• VNET Group's stock price has surpassed its 200-day moving average, trading at $11.24 on high volume, indicating potential upward momentum in investor interest.
• Equities analysts have mixed sentiments on VNET Group, with Bank of America raising its price target from $11.80 to $12.60, while Wall Street Zen downgraded the stock to a "sell" rating.
• The company reported disappointing earnings with a loss of ($0.01) EPS, missing estimates and revealing revenue significantly below expectations at $339.65 million.

VNET Group, Inc. - Unsponsored ADR (NASDAQ:VNET - Get Free Report)'s share price passed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $7.36 and traded as high as $11.80. VNET Group shares last traded at $11.24, with a volume of 8,570,531 shares changing hands.

Analysts Set New Price Targets

A number of equities research analysts have commented on the company. Bank of America raised their target price on 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 downgraded VNET Group from a "hold" rating to a "sell" rating in a report on Saturday, August 23rd. Two investment analysts have rated the stock with a Strong Buy rating and five have issued a Buy rating to the stock. According to MarketBeat.com, VNET Group currently has an average rating of "Buy" and an average price target of $9.96.

VNET Group Trading Up 4.5%

The business has a 50 day simple moving average of $8.68 and a 200-day simple moving average of $7.36. The company has a current ratio of 0.97, a quick ratio of 0.97 and a debt-to-equity ratio of 2.40. The stock has a market capitalization of $3.02 billion, a price-to-earnings ratio of -140.50, a price-to-earnings-growth ratio of 6.20 and a beta of 0.19.

VNET Group (NASDAQ:VNET - Get Free Report) last issued its quarterly earnings results on Thursday, August 21st. The information technology services provider reported ($0.01) earnings per share (EPS) for the quarter, missing analysts' consensus estimates 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 during the quarter, compared to analyst estimates of $2.27 billion. VNET Group has set its FY 2025 guidance at EPS. On average, equities analysts predict that VNET Group, Inc. - Unsponsored ADR will post -0.06 earnings per share for the current year.

VNET Group declared that its board has authorized a stock repurchase plan on Friday, June 27th that permits the company to repurchase $0.00 in outstanding shares. This repurchase authorization permits the information technology services provider to repurchase shares of its stock through open market purchases. Shares repurchase plans are often a sign that the company's board of directors believes its stock is undervalued.

Hedge Funds Weigh In On VNET Group

Hedge funds and other institutional investors have recently modified their holdings of the company. Mirae Asset Global Investments Co. Ltd. lifted its stake 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 valued at $670,000 after purchasing an additional 42,710 shares in the last quarter. Amundi acquired a new position in shares of VNET Group in the 1st quarter valued at about $5,093,000. Oppenheimer & Co. Inc. acquired a new position in shares of VNET Group in the 1st quarter valued at about $207,000. Deutsche Bank AG acquired a new position in shares of VNET Group in the 1st quarter valued at about $706,000. Finally, Nuveen LLC acquired a new position in shares of VNET Group in the 1st quarter valued at about $320,000. 72.83% of the stock is owned by institutional investors and hedge funds.

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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