VNET Group (NASDAQ:VNET) Cut to Sell at Wall Street Zen

VNET Group (NASDAQ:VNET) was downgraded by Wall Street Zen from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Saturday.

Other research analysts also recently issued research reports about the stock. Weiss Ratings reiterated a “sell (d+)” rating on shares of VNET Group in a research report on Friday. Bank of America upped their price target on shares of VNET Group from $11.80 to $12.60 and gave the stock a “buy” rating in a research report on Friday, August 22nd. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $11.15.

VNET Group Stock Up 2.4%

VNET opened at $9.62 on Friday. The firm’s 50-day simple moving average is $9.15 and its 200-day simple moving average is $7.49. The company has a debt-to-equity ratio of 2.40, a quick ratio of 0.97 and a current ratio of 0.97. VNET Group has a twelve month low of $3.25 and a twelve month high of $16.13. The firm has a market cap of $2.59 billion, a price-to-earnings ratio of -120.25, a PEG ratio of 5.41 and a beta of 0.20.

VNET Group (NASDAQ:VNET) last posted its earnings results on Thursday, August 21st. The information technology services provider reported ($0.01) earnings per share for the quarter, missing the consensus estimate of $0.02 by ($0.03). VNET Group had a return on equity of 0.98% and a net margin of 0.74%.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. Equities research analysts anticipate that VNET Group will post -0.06 EPS for the current fiscal year.

VNET Group announced that its Board of Directors has initiated a stock repurchase plan 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. Shares buyback plans are generally a sign that the company’s board of directors believes its stock is undervalued.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. EverSource Wealth Advisors LLC increased its position 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 worth $29,000 after buying an additional 1,426 shares during the period. Quantbot Technologies LP bought a new position in VNET Group during the 1st quarter worth $36,000. FNY Investment Advisers LLC bought a new position in VNET Group during the 2nd quarter worth $32,000. Summit Securities Group LLC bought a new position in VNET Group during the 1st quarter worth $40,000. Finally, Farther Finance Advisors LLC bought a new position in VNET Group during the 2nd quarter worth $34,000. Institutional investors 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.