VNET Group (NASDAQ:VNET) Trading 8.7% Higher - Here's What Happened

Key Points

• VNET stock jumped 8.7% to about $9.18 intraday on Tuesday, with 4.4 million shares traded—roughly 33% below its average session volume.
• Analysts are mixed (two Buys, one Sell), leaving a MarketBeat consensus of "Hold" and an average price target of $18.08.
• The company reported $0.00 EPS versus $0.04 expected (a miss) while revenue of $384.1 million beat estimates; VNET remains unprofitable with a negative net margin (-2.48%) and a high debt-to-equity ratio (2.68).

VNET Group, Inc. - Unsponsored ADR (NASDAQ:VNET - Get Free Report) traded up 8.7% on Tuesday . The stock traded as high as $9.17 and last traded at $9.1760. 4,406,478 shares were traded during mid-day trading, a decline of 33% from the average session volume of 6,562,753 shares. The stock had previously closed at $8.44.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on the company. Bank of America reiterated a "buy" rating on shares of VNET Group in a research report on Monday, March 16th. Weiss Ratings reissued a "sell (d-)" rating on shares of VNET Group in a research note on Friday, March 27th. Finally, Jefferies Financial Group reissued a "buy" rating and set a $23.55 price objective on shares of VNET Group in a research note on Monday, March 16th. Two investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $18.08.

VNET Group Stock Performance

The stock has a market cap of $2.45 billion, a PE ratio of -31.47 and a beta of 0.16. The company has a fifty day moving average price of $10.28 and a 200 day moving average price of $9.83. The company has a quick ratio of 0.90, a current ratio of 0.92 and a debt-to-equity ratio of 2.68.

VNET Group (NASDAQ:VNET - Get Free Report) last released its quarterly earnings data on Monday, March 16th. The information technology services provider reported $0.00 EPS for the quarter, missing the consensus estimate of $0.04 by ($0.04). The company had revenue of $384.07 million during the quarter, compared to analysts' expectations of $368.64 million. VNET Group had a positive return on equity of 1.36% and a negative net margin of 2.48%. Analysts expect that VNET Group, Inc. - Unsponsored ADR will post -0.06 earnings per share for the current year.

Insider Activity at VNET Group

In other news, Director David Lifeng Chen sold 83,544 shares of VNET Group stock in a transaction dated Monday, March 23rd. The stock was sold at an average price of $1.51, for a total value of $126,151.44. Following the transaction, the director owned 334,164 shares in the company, valued at approximately $504,587.64. The trade was a 20.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 12.10% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of VNET. Global Retirement Partners LLC purchased a new position in VNET Group during the 4th quarter valued at about $27,000. EverSource Wealth Advisors LLC increased its holdings in VNET Group by 52.2% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 4,157 shares of the information technology services provider's stock valued at $29,000 after purchasing an additional 1,426 shares during the period. Allianz SE purchased a new position in VNET Group during the 4th quarter valued at about $50,000. Headlands Technologies LLC purchased a new position in VNET Group during the 2nd quarter valued at about $55,000. Finally, Persistent Asset Partners Ltd purchased a new position in VNET Group during the 3rd quarter valued at about $100,000. Hedge funds and other institutional investors own 72.83% of the company's stock.

VNET Group Company Profile

VNET Group, Inc NASDAQ: VNET is a leading carrier-neutral internet data center (IDC) services provider in China. Established in 1999 and headquartered in Beijing, the company delivers a full spectrum of infrastructure solutions that support the growing digital economy. Its core offerings include data center colocation, managed hosting, network connectivity, and disaster recovery services designed to meet the performance and reliability requirements of enterprise and internet content customers.

The company's product portfolio spans private cloud, public cloud and hybrid cloud deployments, enabling clients to scale computing resources on demand.

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