Kingsoft Cloud (NASDAQ:KC) Shares Gap Down – Here’s Why

Kingsoft Cloud Holdings Limited Sponsored ADR (NASDAQ:KC) shares gapped down before the market opened on Monday . The stock had previously closed at $12.33, but opened at $11.78. Kingsoft Cloud shares last traded at $11.7490, with a volume of 746,397 shares changing hands.

Analyst Ratings Changes

A number of analysts have recently issued reports on the stock. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Kingsoft Cloud in a report on Friday, July 17th. Jefferies Financial Group reiterated a “buy” rating and set a $17.00 price objective on shares of Kingsoft Cloud in a research report on Thursday, July 16th. Finally, Morgan Stanley initiated coverage on Kingsoft Cloud in a report on Tuesday, July 7th. They set an “overweight” rating and a $15.00 price objective on the stock. Five equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Kingsoft Cloud presently has an average rating of “Moderate Buy” and an average target price of $17.15.

Kingsoft Cloud Stock Down 3.8%

The stock has a 50 day moving average price of $10.52 and a 200-day moving average price of $12.94. The stock has a market capitalization of $3.58 billion, a P/E ratio of -25.22 and a beta of 1.99. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.03 and a quick ratio of 1.03.

Kingsoft Cloud (NASDAQ:KC) last released its earnings results on Friday, May 15th. The company reported ($0.17) earnings per share for the quarter. The company had revenue of $392.15 million during the quarter. Kingsoft Cloud had a negative net margin of 9.38% and a negative return on equity of 11.67%. As a group, research analysts expect that Kingsoft Cloud Holdings Limited Sponsored ADR will post -0.39 EPS for the current fiscal year.

Insider Buying and Selling at Kingsoft Cloud

In other news, CEO Tao Zou sold 300,000 shares of the stock in a transaction that occurred on Friday, July 17th. The stock was sold at an average price of $0.64, for a total transaction of $192,000.00. Following the completion of the sale, the chief executive officer owned 1,700,000 shares of the company’s stock, valued at approximately $1,088,000. This represents a 15.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Company insiders own 14.20% of the company’s stock.

Institutional Investors Weigh In On Kingsoft Cloud

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. The Manufacturers Life Insurance Company purchased a new position in shares of Kingsoft Cloud during the first quarter valued at about $9,456,000. Defiance ETFs LLC bought a new stake in Kingsoft Cloud during the 4th quarter valued at approximately $6,463,000. Maxi Investments CY Ltd bought a new stake in Kingsoft Cloud during the 4th quarter valued at approximately $5,980,000. Artisan Partners Limited Partnership grew its holdings in shares of Kingsoft Cloud by 16.4% during the 4th quarter. Artisan Partners Limited Partnership now owns 4,016,945 shares of the company’s stock worth $41,535,000 after acquiring an additional 564,907 shares during the period. Finally, LMR Partners LLP grew its holdings in shares of Kingsoft Cloud by 1,114.5% during the 2nd quarter. LMR Partners LLP now owns 518,200 shares of the company’s stock worth $6,488,000 after acquiring an additional 475,533 shares during the period. 13.40% of the stock is currently owned by 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.