VNET Group (NASDAQ:VNET) Trading 8% Higher - Time to Buy?

Key Points

• VNET Group's stock experienced an 8% increase, trading at $8.29 after closing at $7.68, with a volume decline from its average sessions.
• Wall Street analysts have mixed opinions, with Bank of America raising its price target to $12.60 while Wall Street Zen downgraded it to a "sell," leaving a consensus rating of "buy."
• The company reported disappointing earnings with a loss of ($0.01) EPS and revenue significantly below estimates at $339.65 million for the quarter.

VNET Group, Inc. - Unsponsored ADR (NASDAQ:VNET - Get Free Report)'s share price traded up 8% during trading on Tuesday . The company traded as high as $8.33 and last traded at $8.29. 5,095,682 shares changed hands during mid-day trading, a decline of 34% from the average session volume of 7,749,499 shares. The stock had previously closed at $7.68.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on the company. Wall Street Zen cut VNET Group from a "hold" rating to a "sell" rating in a research note 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 research analysts have rated the stock with a Strong Buy rating and five have assigned a Buy rating to the company's stock. According to MarketBeat.com, VNET Group presently has a consensus rating of "Buy" and an average target price of $9.96.

VNET Group Stock Up 5.0%

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 fifty day moving average price of $8.10 and a two-hundred day moving average price of $7.44. The company has a market cap of $2.57 billion, a P/E ratio of -119.63, a price-to-earnings-growth ratio of 6.33 and a beta of 0.16.

VNET Group (NASDAQ:VNET - Get Free Report) last posted its earnings results on Thursday, August 21st. The information technology services provider reported ($0.01) earnings per share for the quarter, missing analysts' consensus estimates of $0.02 by ($0.03). VNET Group had a net margin of 0.74% and a return on equity of 0.98%. The company had revenue of $339.65 million during the quarter, compared to the consensus estimate of $2.27 billion. VNET Group has set its FY 2025 guidance at EPS. On average, research analysts expect that VNET Group, Inc. - Unsponsored ADR will post -0.06 EPS for the current year.

VNET Group announced that its Board of Directors has approved a share buyback 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. Stock buyback programs are usually a sign that the company's management believes its stock is undervalued.

Institutional Trading of VNET Group

A number of hedge funds have recently bought and sold shares of the business. EverSource Wealth Advisors LLC lifted its holdings in VNET Group by 52.2% during the second quarter. EverSource Wealth Advisors LLC now owns 4,157 shares of the information technology services provider's stock worth $29,000 after acquiring an additional 1,426 shares during the period. Public Employees Retirement System of Ohio lifted its holdings in VNET Group by 16.8% during the second quarter. Public Employees Retirement System of Ohio now owns 14,600 shares of the information technology services provider's stock worth $101,000 after acquiring an additional 2,100 shares during the period. Bingham Private Wealth LLC lifted its holdings in VNET Group by 24.3% during the second quarter. Bingham Private Wealth LLC now owns 13,050 shares of the information technology services provider's stock worth $90,000 after acquiring an additional 2,547 shares during the period. Main Management ETF Advisors LLC grew its position in shares of VNET Group by 1.7% during the 2nd quarter. Main Management ETF Advisors LLC now owns 168,548 shares of the information technology services provider's stock valued at $1,163,000 after acquiring an additional 2,736 shares during the period. Finally, Personal CFO Solutions LLC grew its position in shares of VNET Group by 9.3% during the 2nd quarter. Personal CFO Solutions LLC now owns 34,505 shares of the information technology services provider's stock valued at $238,000 after acquiring an additional 2,933 shares during the period. 72.83% of the stock is currently 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.