Weiss Ratings Reaffirms Sell (D+) Rating for VNET Group (NASDAQ:VNET)

Key Points

• Weiss Ratings has reaffirmed a "Sell (D+)" rating for VNET Group, indicating continued concerns about the company's performance.
• Despite Weiss Ratings' negative outlook, Bank of America has upgraded VNET Group with a "Buy" rating and a revised price target of $12.60.
• VNET Group reported a loss of ($0.01) EPS for the last quarter, falling short of analysts' expectations, and has a consensus rating of "Moderate Buy" with an average price target of $11.15.

VNET Group (NASDAQ:VNET - Get Free Report)'s stock had its "sell (d+)" rating reaffirmed by equities research analysts at Weiss Ratings in a note issued to investors on Friday,Weiss Ratings reports.

A number of other research firms have also commented on VNET. Bank of America raised their price objective on shares of VNET Group from $11.80 to $12.60 and gave the company a "buy" rating in a research report on Friday, August 22nd. Wall Street Zen upgraded shares of VNET Group from a "sell" rating to a "hold" rating in a research report on Friday, October 3rd. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $11.15.

VNET Group Stock Performance

NASDAQ:VNET traded up $0.23 on Friday, reaching $9.62. 4,329,922 shares of the company's stock were exchanged, compared to its average volume of 7,652,397. 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 firm has a market cap of $2.59 billion, a price-to-earnings ratio of -120.25, a P/E/G ratio of 5.23 and a beta of 0.20. VNET Group has a 52 week low of $3.25 and a 52 week high of $16.13. The stock has a fifty day simple moving average of $9.12 and a 200-day simple moving average of $7.47.

VNET Group (NASDAQ:VNET - Get Free Report) last released its quarterly earnings data on Thursday, August 21st. The information technology services provider reported ($0.01) EPS 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 firm 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. As a group, sell-side analysts predict that VNET Group will post -0.06 earnings per share for the current year.

VNET Group announced that its Board of Directors has approved a share buyback plan 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 reacquire shares of its stock through open market purchases. Stock buyback plans are often an indication that the company's management believes its stock is undervalued.

Hedge Funds Weigh In On VNET Group

A number of hedge funds have recently bought and sold shares of VNET. EverSource Wealth Advisors LLC lifted its stake 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 acquiring an additional 1,426 shares during the period. FNY Investment Advisers LLC purchased a new stake in shares of VNET Group during the 2nd quarter valued at about $32,000. Farther Finance Advisors LLC purchased a new stake in shares of VNET Group during the 2nd quarter valued at about $34,000. Quantbot Technologies LP purchased a new stake in shares of VNET Group during the 1st quarter valued at about $36,000. Finally, Summit Securities Group LLC purchased a new stake in VNET Group in the 1st quarter worth approximately $40,000. 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.

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