Xunlei (NASDAQ:XNET) Shares Gap Down - Time to Sell?

Key Points

• Xunlei Limited's shares gapped down significantly, opening at $8.22 after closing at $8.79, and last traded at $8.03 with over 1.9 million shares changing hands.
• Wall Street analysts upgraded Xunlei from a "hold" to a "buy" rating, indicating a positive outlook despite the recent stock decline.
• The company reported a net margin of 202.62% and earnings of $0.12 EPS for the last quarter, while also announcing guidance for Q3 2025.

Xunlei Limited (NASDAQ:XNET - Get Free Report)'s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $8.79, but opened at $8.22. Xunlei shares last traded at $8.03, with a volume of 1,909,434 shares traded.

Wall Street Analysts Forecast Growth

Separately, Wall Street Zen raised shares of Xunlei from a "hold" rating to a "buy" rating in a research note on Saturday, August 16th.

Xunlei Stock Performance

The company has a current ratio of 2.10, a quick ratio of 2.60 and a debt-to-equity ratio of 0.04. The firm has a market capitalization of $451.06 million, a price-to-earnings ratio of 0.63 and a beta of 0.88. The stock's 50 day moving average price is $4.94 and its two-hundred day moving average price is $4.57.

Xunlei (NASDAQ:XNET - Get Free Report) last issued its quarterly earnings data on Thursday, August 14th. The software maker reported $0.12 EPS for the quarter. The firm had revenue of $103.54 million for the quarter. Xunlei had a net margin of 202.62% and a return on equity of 4.50%. Xunlei has set its Q3 2025 guidance at EPS.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Russell Investments Group Ltd. lifted its holdings in Xunlei by 21.2% in the 1st quarter. Russell Investments Group Ltd. now owns 29,636 shares of the software maker's stock valued at $132,000 after purchasing an additional 5,190 shares in the last quarter. Walleye Capital LLC purchased a new position in Xunlei in the 2nd quarter valued at about $51,000. QRG Capital Management Inc. purchased a new position in Xunlei in the 2nd quarter valued at about $56,000. Two Sigma Securities LLC purchased a new position in Xunlei in the 4th quarter valued at about $36,000. Finally, NewEdge Advisors LLC lifted its holdings in Xunlei by 9,106.5% in the 1st quarter. NewEdge Advisors LLC now owns 18,413 shares of the software maker's stock valued at $83,000 after purchasing an additional 18,213 shares in the last quarter. 5.07% of the stock is currently owned by hedge funds and other institutional investors.

Xunlei Company Profile

Xunlei Limited, together with its subsidiaries, operates an internet platform for digital media content in the People's Republic of China. Its platform is based on cloud technology that enables users to access, store, manage, and consume digital media content. The company offers Xunlei Accelerator, which enables users to accelerate digital transmission over the internet; mobile acceleration plug-in, which provides mobile device users with benefits of download speed acceleration and download success rate improvements; and subscription services that offer users premium services through Green Channel and Fast Bird products.