VNET Group (NASDAQ:VNET) Trading Up 4.3% - What's Next?

Key Points

• VNET Group's stock price rose 4.3% during mid-day trading, closing at $10.82 after reaching a high of $10.59, despite trading volume decreasing significantly by 79% from its average.
• Recent analyst ratings show mixed sentiment: Bank of America raised its target price and maintained a "buy" rating, while Wall Street Zen downgraded the stock to "sell", resulting in a consensus average rating of "buy".
• VNET Group reported a loss of $0.01 per share for the last quarter, missing expectations, and is anticipating further losses with a consensus estimate of -0.06 EPS for the current fiscal year.

VNET Group, Inc. - Unsponsored ADR (NASDAQ:VNET - Get Free Report)'s stock price was up 4.3% during mid-day trading on Thursday . The stock traded as high as $10.59 and last traded at $10.82. Approximately 1,634,233 shares traded hands during trading, a decline of 79% from the average daily volume of 7,826,079 shares. The stock had previously closed at $10.37.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on VNET shares. Bank of America increased their target price on VNET Group from $11.80 to $12.60 and gave the stock a "buy" rating in a research report on Friday, August 22nd. Wall Street Zen downgraded VNET Group from a "hold" rating to a "sell" rating in a research report on Saturday, August 23rd. Two research analysts have rated the stock with a Strong Buy rating and five have assigned a Buy rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus price target of $9.96.

VNET Group Stock Up 12.1%

The stock has a 50 day moving average price of $8.41 and a 200-day moving average price of $7.38. The stock has a market capitalization of $3.13 billion, a P/E ratio of -144.44, a PEG ratio of 5.95 and a beta of 0.16. The company has a debt-to-equity ratio of 2.40, a current ratio of 0.97 and a quick ratio of 0.97.

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 (EPS) for the quarter, missing the consensus estimate of $0.02 by ($0.03). The business had revenue of $339.65 million during the quarter, compared to the consensus estimate of $2.27 billion. VNET Group had a return on equity of 0.98% and a net margin of 0.74%. VNET Group has set its FY 2025 guidance at EPS. As a group, research analysts expect that VNET Group, Inc. - Unsponsored ADR will post -0.06 EPS for the current fiscal year.

VNET Group announced that its board has initiated a stock buyback program on Friday, June 27th that allows the company to repurchase $0.00 in outstanding shares. This repurchase authorization allows the information technology services provider to purchase shares of its stock through open market purchases. Shares repurchase programs are usually a sign that the company's board of directors believes its shares are undervalued.

Institutional Trading of VNET Group

Large investors have recently modified their holdings of the business. EverSource Wealth Advisors LLC grew its stake 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 worth $29,000 after purchasing an additional 1,426 shares during the last quarter. Quantbot Technologies LP purchased a new stake in VNET Group in the first quarter worth about $36,000. FNY Investment Advisers LLC purchased a new stake in VNET Group in the second quarter worth about $32,000. Summit Securities Group LLC purchased a new stake in VNET Group in the first quarter worth about $40,000. Finally, Farther Finance Advisors LLC purchased a new stake in VNET Group in the second quarter worth about $34,000. 72.83% of the stock is 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.

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