VNET Group (NASDAQ:VNET) Shares Gap Down Following Weak Earnings

Shares of VNET Group, Inc. – Unsponsored ADR (NASDAQ:VNET) gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $7.92, but opened at $7.00. VNET Group shares last traded at $7.0950, with a volume of 2,441,930 shares.

The information technology services provider reported ($0.08) EPS for the quarter, missing the consensus estimate of ($0.06) by ($0.02). The business had revenue of $409.00 million during the quarter, compared to analyst estimates of $401.77 million. VNET Group had a negative net margin of 22.01% and a negative return on equity of 31.59%.

Analysts Set New Price Targets

A number of equities analysts have weighed in on VNET shares. Deutsche Bank Aktiengesellschaft assumed coverage on shares of VNET Group in a research report on Tuesday, July 7th. They set a “buy” rating and a $12.50 price objective for the company. Zacks Research raised shares of VNET Group from a “strong sell” rating to a “hold” rating in a research note on Wednesday, May 27th. Morgan Stanley restated an “overweight” rating and set a $16.00 price target on shares of VNET Group in a research report on Wednesday, May 27th. Jefferies Financial Group reaffirmed a “buy” rating and issued a $24.79 price target on shares of VNET Group in a research note on Tuesday, May 26th. Finally, Bank of America set a $16.30 price objective on VNET Group and gave the stock a “buy” rating in a report on Tuesday, May 26th. Four analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $17.40.

Insiders Place Their Bets

In other VNET Group news, Director Sean Shao sold 60,000 shares of VNET Group stock in a transaction on Monday, June 1st. The shares were sold at an average price of $1.71, for a total transaction of $102,600.00. Following the sale, the director owned 983,820 shares of the company’s stock, valued at $1,682,332.20. The trade was a 5.75% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 12.10% of the company’s stock.

Hedge Funds Weigh In On VNET Group

Several hedge funds and other institutional investors have recently modified their holdings of the business. Pinpoint Asset Management Singapore Pte. Ltd. grew its stake in VNET Group by 1,849.6% during the 4th quarter. Pinpoint Asset Management Singapore Pte. Ltd. now owns 764,056 shares of the information technology services provider’s stock valued at $6,464,000 after acquiring an additional 724,865 shares in the last quarter. The Manufacturers Life Insurance Company lifted its stake in VNET Group by 20.4% in the 1st quarter. The Manufacturers Life Insurance Company now owns 2,623,594 shares of the information technology services provider’s stock worth $22,012,000 after purchasing an additional 443,656 shares in the last quarter. FACT Capital LP purchased a new position in VNET Group in the 1st quarter worth approximately $4,012,000. Regal Partners Ltd acquired a new position in shares of VNET Group during the 1st quarter worth approximately $3,095,000. Finally, Janus Henderson Group PLC acquired a new position in shares of VNET Group during the 1st quarter worth approximately $1,809,000. 72.83% of the stock is owned by hedge funds and other institutional investors.

VNET Group Stock Down 10.2%

The company has a quick ratio of 0.99, a current ratio of 0.99 and a debt-to-equity ratio of 3.99. The firm has a market capitalization of $1.92 billion, a PE ratio of -5.19 and a beta of 0.32. The business has a 50-day moving average price of $7.88 and a 200-day moving average price of $9.25.

VNET Group Company Profile

VNET Group, Inc (NASDAQ: VNET) is a leading carrier-neutral internet data center (IDC) services provider in China. Established in 1999 and headquartered in Beijing, the company delivers a full spectrum of infrastructure solutions that support the growing digital economy. Its core offerings include data center colocation, managed hosting, network connectivity, and disaster recovery services designed to meet the performance and reliability requirements of enterprise and internet content customers.

The company’s product portfolio spans private cloud, public cloud and hybrid cloud deployments, enabling clients to scale computing resources on demand.