VNET Group (NASDAQ:VNET) Trading Down 8.8% - Here's What Happened

Key Points

• VNET Group's stock experienced an 8.8% decline during trading, hitting a low of $8.68, with a total of approximately 6.77 million shares traded.
• Wall Street analysts have mixed views on the stock, with one upgrading it to a "hold" rating while others maintain a "buy" or "sell" status, resulting in an average rating of "Moderate Buy" and a price target of $11.15.
• The company's latest quarterly earnings report showed a loss of ($0.01) earnings per share, falling short of analyst estimates, while VNET Group's revenue was significantly lower than expected at $339.65 million.

Shares of VNET Group, Inc. - Unsponsored ADR (NASDAQ:VNET - Get Free Report) were down 8.8% during mid-day trading on Friday . The stock traded as low as $8.68 and last traded at $8.74. Approximately 6,773,718 shares were traded during trading, a decline of 13% from the average daily volume of 7,791,087 shares. The stock had previously closed at $9.58.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on VNET shares. Wall Street Zen upgraded VNET Group from a "sell" rating to a "hold" rating in a report on Friday, October 3rd. Bank of America boosted their price target on VNET Group from $11.80 to $12.60 and gave the company a "buy" rating in a report on Friday, August 22nd. Finally, Weiss Ratings reiterated a "sell (d+)" rating on shares of VNET Group in a report on Wednesday. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, VNET Group presently has an average rating of "Moderate Buy" and an average price target of $11.15.

VNET Group Stock Down 11.2%

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 50-day simple moving average of $8.86 and a 200-day simple moving average of $7.38. The company has a market cap of $2.29 billion, a price-to-earnings ratio of -105.36, a price-to-earnings-growth ratio of 5.70 and a beta of 0.20.

VNET Group (NASDAQ:VNET - Get Free Report) last announced 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 for the quarter, compared to analyst estimates of $2.27 billion. VNET Group has set its FY 2025 guidance at EPS. As a group, analysts predict that VNET Group, Inc. - Unsponsored ADR will post -0.06 EPS for the current year.

VNET Group declared that its Board of Directors has initiated a share buyback program on Friday, June 27th that allows the company to buyback $0.00 in shares. This buyback authorization allows the information technology services provider to buy shares of its stock through open market purchases. Stock buyback programs are often a sign that the company's board believes its stock is undervalued.

Institutional Trading of VNET Group

Institutional investors have recently modified their holdings of the company. EverSource Wealth Advisors LLC lifted its holdings in shares of VNET Group by 52.2% in the second quarter. EverSource Wealth Advisors LLC now owns 4,157 shares of the information technology services provider's stock valued at $29,000 after buying an additional 1,426 shares during the period. Quantbot Technologies LP acquired a new stake in shares of VNET Group in the first quarter valued at $36,000. FNY Investment Advisers LLC acquired a new stake in shares of VNET Group in the second quarter valued at $32,000. Summit Securities Group LLC acquired a new stake in shares of VNET Group in the first quarter valued at $40,000. Finally, Farther Finance Advisors LLC acquired a new stake in shares of VNET Group in the second quarter valued at $34,000. Institutional investors and hedge funds own 72.83% of the company's stock.

About VNET Group

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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