VNET Group (NASDAQ:VNET) Trading Down 5.1% - Here's Why

Key Points

• VNET Group's shares dropped 5.1%, closing at $7.87, significantly below the previous close of $8.29, with trading volume down by 81%.
• Analyst ratings show mixed views, with Wall Street Zen changing their recommendation from "hold" to "sell," while Bank of America increased their target price from $11.80 to $12.60 and maintained a "buy" rating.
• Recent quarterly earnings reported a loss of (0.01) earnings per share, falling short of analysts' expectations, prompting a FY 2025 EPS guidance of -0.06.

VNET Group, Inc. - Unsponsored ADR (NASDAQ:VNET - Get Free Report) shares fell 5.1% during trading on Monday . The stock traded as low as $7.82 and last traded at $7.87. 1,491,209 shares changed hands during trading, a decline of 81% from the average session volume of 7,806,104 shares. The stock had previously closed at $8.29.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on VNET shares. Wall Street Zen cut shares of VNET Group from a "hold" rating to a "sell" rating in a research report on Saturday. Bank of America boosted their target price on VNET Group from $11.80 to $12.60 and gave the company a "buy" rating in a report on Friday. Two equities research analysts have rated the stock with a Strong Buy rating and five have issued a Buy rating to the stock. According to MarketBeat, the stock currently has an average rating of "Buy" and an average price target of $9.96.

VNET Group Price Performance

The company has a debt-to-equity ratio of 2.40, a quick ratio of 0.97 and a current ratio of 0.97. The company has a 50-day simple moving average of $7.51 and a 200-day simple moving average of $7.82. The company has a market cap of $2.11 billion, a price-to-earnings ratio of -98.19, a PEG ratio of 5.76 and a beta of 0.18.

VNET Group (NASDAQ:VNET - Get Free Report) last posted its quarterly 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). The business had revenue of $339.65 million during the quarter, compared to analysts' expectations of $2.27 billion. VNET Group had a net margin of 0.74% and a return on equity of 0.98%. VNET Group has set its FY 2025 guidance at EPS. As a group, research 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 of Directors has authorized a stock repurchase program on Friday, June 27th that authorizes the company to buyback $0.00 in outstanding shares. This buyback authorization authorizes 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 Investors Weigh In On VNET Group

Several institutional investors have recently modified their holdings of the company. Liontrust Investment Partners LLP grew its holdings in shares of VNET Group by 152.5% in the 2nd quarter. Liontrust Investment Partners LLP now owns 24,165 shares of the information technology services provider's stock worth $167,000 after acquiring an additional 14,593 shares during the period. Nomura Holdings Inc. boosted its position in VNET Group by 28.1% during the second quarter. Nomura Holdings Inc. now owns 40,919 shares of the information technology services provider's stock worth $282,000 after purchasing an additional 8,964 shares in the last quarter. Headlands Technologies LLC acquired a new stake in VNET Group in the second quarter valued at $55,000. Sender Co & Partners Inc. purchased a new position in shares of VNET Group in the second quarter valued at $209,000. Finally, Orion Porfolio Solutions LLC purchased a new position in shares of VNET Group in the second quarter valued at $140,000. 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.