VNET Group (NASDAQ:VNET) Stock Falls 5.3% – Should You Sell?

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

Analyst Ratings Changes

A number of research firms recently weighed in on VNET. Deutsche Bank Aktiengesellschaft assumed coverage on VNET Group in a research note on Tuesday, July 7th. They set a “buy” rating and a $12.50 price target on the stock. Weiss Ratings cut VNET Group from a “sell (d+)” rating to a “sell (d)” rating in a research report on Tuesday, September 1st. Finally, Morgan Stanley reissued an “overweight” rating and issued a $14.00 price target on shares of VNET Group in a research note on Wednesday, August 19th. Four equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $16.90.

VNET Group Stock Performance

The stock has a market cap of $1.02 billion, a PE ratio of -2.64 and a beta of 0.23. The company has a debt-to-equity ratio of 4.35, a quick ratio of 0.97 and a current ratio of 0.97. The business’s fifty day moving average price is $5.84 and its 200-day moving average price is $8.49.

VNET Group (NASDAQ:VNET) last posted its quarterly 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 for the quarter, compared to the consensus estimate of $401.77 million. As a group, equities research analysts forecast that VNET Group, Inc. – Unsponsored ADR will post -0.48 EPS for the current fiscal year.

Institutional Investors Weigh In On VNET Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Leonteq Securities AG acquired a new stake in VNET Group in the 1st quarter worth about $25,000. Parallel Advisors LLC boosted its position in shares of VNET Group by 26.8% during the 1st quarter. Parallel Advisors LLC now owns 5,495 shares of the information technology services provider’s stock worth $46,000 after purchasing an additional 1,160 shares during the period. Nykredit A S purchased a new stake in VNET Group in the second quarter valued at approximately $89,000. Oppenheimer & Co. Inc. acquired a new position in VNET Group in the 3rd quarter valued at about $62,000. Finally, Lido Advisors LLC purchased a new stake in shares of VNET Group during the first quarter worth $126,000. 72.83% of the stock is owned by institutional investors and hedge funds.

About VNET Group

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.