VNET Group (NASDAQ:VNET) Stock Falls 5.3% – Here’s Why

VNET Group, Inc. – Unsponsored ADR (NASDAQ:VNET) was down 5.3% during trading on Tuesday. The stock traded as low as $3.74 and last traded at $3.7220. 1,626,967 shares traded hands during mid-day trading, a decline of 74% from the average session volume of 6,222,982 shares. The stock had previously closed at $3.93.

Analyst Ratings Changes

A number of brokerages recently issued reports on VNET. Deutsche Bank Aktiengesellschaft started coverage on VNET Group in a research report on Tuesday, July 7th. They set a “buy” rating and a $12.50 price objective for the company. Morgan Stanley reaffirmed an “overweight” rating and set a $14.00 price objective on shares of VNET Group in a research report on Wednesday, August 19th. Finally, Weiss Ratings downgraded VNET Group from a “sell (d+)” rating to a “sell (d)” rating in a report on Tuesday, September 1st. Four investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $16.90.

VNET Group Trading Down 3.9%

The company has a current ratio of 0.97, a quick ratio of 0.97 and a debt-to-equity ratio of 4.35. The stock has a market capitalization of $1.02 billion, a price-to-earnings ratio of -2.64 and a beta of 0.23. The business has a 50 day simple moving average of $5.84 and a 200-day simple moving average of $8.49.

VNET Group (NASDAQ:VNET) last issued its earnings results on Wednesday, August 19th. The information technology services provider reported ($0.06) EPS for the quarter, missing analysts’ consensus estimates of ($0.02) by ($0.04). VNET Group had a negative net margin of 22.29% and a negative return on equity of 36.25%. The business had revenue of $409.00 million during the quarter, compared to analysts’ expectations of $401.77 million. On average, equities analysts predict that VNET Group, Inc. – Unsponsored ADR will post -0.48 earnings per share for the current year.

Institutional Trading of VNET Group

Hedge funds and other institutional investors have recently modified their holdings of the company. Infini Capital Management Ltd bought a new stake in VNET Group during the 2nd quarter valued at approximately $38,883,000. Carmignac Gestion raised its holdings in VNET Group by 1,375.1% during the 2nd quarter. Carmignac Gestion now owns 4,760,599 shares of the information technology services provider’s stock worth $38,123,000 after purchasing an additional 4,437,879 shares during the last quarter. Senvest Management LLC grew its position in shares of VNET Group by 211.7% during the 1st quarter. Senvest Management LLC now owns 2,779,637 shares of the information technology services provider’s stock worth $23,321,000 after buying an additional 1,887,883 shares during the period. Greenwoods Asset Management Hong Kong Ltd. acquired a new stake in shares of VNET Group during the second quarter worth about $5,214,000. Finally, FACT Capital LP acquired a new position in shares of VNET Group during the first quarter worth about $4,012,000. 72.83% of the stock is currently owned by hedge funds and other institutional investors.

VNET Group Company Profile

VNET Group, Inc (NASDAQ:VNET), formerly known as 21Vianet Group, is a provider of data center and information technology infrastructure services in China. Founded in 1999, the company operates carrier-neutral data centers that allow customers to house servers and other equipment while connecting to multiple telecommunications and internet networks.

VNET’s services include data center hosting, cloud computing, managed network services, internet connectivity, content delivery and hybrid cloud solutions.