VNET Group (NASDAQ:VNET) Shares Down 5.9% – Here’s Why

VNET Group, Inc. – Unsponsored ADR (NASDAQ:VNET)’s share price was down 5.9% during mid-day trading on Tuesday . The company traded as low as $8.41 and last traded at $8.38. Approximately 2,141,782 shares traded hands during mid-day trading, a decline of 70% from the average daily volume of 7,083,226 shares. The stock had previously closed at $8.91.

Analysts Set New Price Targets

VNET has been the subject of several research analyst reports. Bank of America lifted their price objective on VNET Group from $11.80 to $12.60 and gave the company a “buy” rating in a research note on Friday, August 22nd. Weiss Ratings reissued a “sell (d-)” rating on shares of VNET Group in a research note on Monday. Finally, Wall Street Zen cut shares of VNET Group from a “hold” rating to a “sell” rating in a report on Saturday, October 25th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $16.30.

VNET Group Stock Performance

The company has a debt-to-equity ratio of 2.88, a current ratio of 0.90 and a quick ratio of 0.90. The business has a 50-day moving average of $9.21 and a 200-day moving average of $8.41. The company has a market capitalization of $2.29 billion, a P/E ratio of -28.33, a P/E/G ratio of 4.37 and a beta of 0.03.

VNET Group (NASDAQ:VNET) last announced its quarterly earnings data on Thursday, November 20th. The information technology services provider reported $0.02 EPS for the quarter, meeting the consensus estimate of $0.02. VNET Group had a negative return on equity of 3.42% and a negative net margin of 5.99%.The company had revenue of $362.63 million for the quarter, compared to the consensus estimate of $335.87 million. On average, sell-side analysts anticipate that VNET Group, Inc. – Unsponsored ADR will post -0.06 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC raised its holdings in shares of VNET Group by 52.2% in 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 purchasing an additional 1,426 shares in the last quarter. FNY Investment Advisers LLC bought a new position in VNET Group in the second quarter worth approximately $32,000. Farther Finance Advisors LLC purchased a new stake in VNET Group during the second quarter worth $34,000. Quantbot Technologies LP bought a new stake in VNET Group during the 1st quarter valued at $36,000. Finally, First Horizon Advisors Inc. purchased a new position in shares of VNET Group in the 2nd quarter valued at $43,000. 72.83% of the stock is currently owned by institutional investors.

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.