Kingsoft Cloud (NASDAQ:KC) Shares Gap Down – Should You Sell?

Kingsoft Cloud Holdings Limited Sponsored ADR (NASDAQ:KC)’s share price gapped down prior to trading on Tuesday . The stock had previously closed at $11.34, but opened at $10.66. Kingsoft Cloud shares last traded at $10.5950, with a volume of 269,730 shares changing hands.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on KC shares. Jefferies Financial Group boosted their target price on shares of Kingsoft Cloud from $17.00 to $19.00 and gave the company a “buy” rating in a report on Wednesday, March 25th. Weiss Ratings restated a “sell (d-)” rating on shares of Kingsoft Cloud in a report on Tuesday, April 21st. Finally, Zacks Research downgraded shares of Kingsoft Cloud from a “strong-buy” rating to a “hold” rating in a report on Monday, March 9th. 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 company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $18.53.

Kingsoft Cloud Price Performance

The company has a 50-day moving average price of $14.64 and a two-hundred day moving average price of $13.30. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.03 and a quick ratio of 1.03. The company has a market cap of $3.20 billion, a PE ratio of -22.51 and a beta of 1.94.

Kingsoft Cloud (NASDAQ:KC) last issued its earnings results on Friday, May 15th. The company reported ($0.17) earnings per share for the quarter. Kingsoft Cloud had a negative return on equity of 11.67% and a negative net margin of 9.38%.The company had revenue of $392.15 million during the quarter. Sell-side analysts expect that Kingsoft Cloud Holdings Limited Sponsored ADR will post -0.46 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in KC. Goldman Sachs Group Inc. boosted its stake in shares of Kingsoft Cloud by 9.6% in the first quarter. Goldman Sachs Group Inc. now owns 133,634 shares of the company’s stock valued at $1,919,000 after purchasing an additional 11,720 shares during the period. Hsbc Holdings PLC boosted its stake in shares of Kingsoft Cloud by 229.6% in the second quarter. Hsbc Holdings PLC now owns 40,706 shares of the company’s stock valued at $506,000 after purchasing an additional 28,355 shares during the period. Squarepoint Ops LLC boosted its stake in shares of Kingsoft Cloud by 76.9% in the second quarter. Squarepoint Ops LLC now owns 90,623 shares of the company’s stock valued at $1,135,000 after purchasing an additional 39,393 shares during the period. Diversify Advisory Services LLC boosted its stake in shares of Kingsoft Cloud by 36.0% in the second quarter. Diversify Advisory Services LLC now owns 20,812 shares of the company’s stock valued at $278,000 after purchasing an additional 5,514 shares during the period. Finally, Diversify Wealth Management LLC boosted its stake in shares of Kingsoft Cloud by 28.5% in the second quarter. Diversify Wealth Management LLC now owns 66,274 shares of the company’s stock valued at $887,000 after purchasing an additional 14,683 shares during the period. 13.40% of the stock is currently owned by hedge funds and other institutional investors.

About Kingsoft Cloud

Kingsoft Cloud Holdings Limited (NASDAQ: KC) is a leading provider of cloud computing services in China, offering a comprehensive suite of infrastructure and platform solutions to enterprise customers. Established in 2012 as a subsidiary of Kingsoft Corporation, the company has grown into an independent public entity with dual listings, serving as a critical backbone for digital transformation across multiple industries. Headquartered in Beijing, Kingsoft Cloud leverages advanced technologies to optimize cloud operations and deliver scalable, reliable services.

The company’s core offerings span Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS), encompassing compute, storage, database, content delivery networks (CDN) and security solutions.