VNET Group (NASDAQ:VNET) Stock Falls 5.5% – Here’s Why

VNET Group, Inc. – Unsponsored ADR (NASDAQ:VNET) shares traded down 5.5% on Friday. The company traded as low as $6.55 and last traded at $6.5380. Approximately 538,425 shares traded hands during trading, a decline of 91% from the average daily volume of 6,248,877 shares. The stock had previously closed at $6.92.

Wall Street Analysts Forecast Growth

A number of research analysts have recently weighed in on VNET shares. Morgan Stanley reissued an “overweight” rating and issued a $14.00 price objective on shares of VNET Group in a report on Wednesday, August 19th. Wall Street Zen lowered shares of VNET Group from a “hold” rating to a “sell” rating in a research report on Saturday, June 27th. Weiss Ratings downgraded shares of VNET Group from a “sell (d+)” rating to a “sell (d)” rating in a report on Tuesday, September 1st. Finally, 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 target price for the company. Four equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $16.90.

VNET Group Stock Down 3.7%

The business’s fifty day simple moving average is $6.87 and its two-hundred day simple moving average is $8.25. The company has a market cap of $1.80 billion, a PE ratio of -4.69 and a beta of 0.27. The company has a debt-to-equity ratio of 4.35, a current ratio of 0.97 and a quick ratio of 0.97.

VNET Group (NASDAQ:VNET) last announced its quarterly earnings results on Wednesday, August 19th. The information technology services provider reported ($0.06) earnings per share for the quarter, missing the consensus estimate of ($0.02) by ($0.04). The business had revenue of $409.00 million during the quarter, compared to analysts’ expectations of $401.77 million. VNET Group had a negative net margin of 22.29% and a negative return on equity of 36.25%. On average, analysts predict that VNET Group, Inc. – Unsponsored ADR will post -0.27 earnings per share for the current year.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in VNET. Norges Bank purchased a new stake in shares of VNET Group during the fourth quarter worth $65,650,000. Infini Capital Management Ltd acquired a new stake in VNET Group during the second quarter worth about $38,883,000. Carmignac Gestion grew its stake in shares of VNET Group by 1,375.1% in the 2nd quarter. Carmignac Gestion now owns 4,760,599 shares of the information technology services provider’s stock valued at $38,123,000 after buying an additional 4,437,879 shares during the period. Temasek Holdings Private Ltd grew its position in VNET Group by 988.7% in the fourth quarter. Temasek Holdings Private Ltd now owns 3,253,150 shares of the information technology services provider’s stock worth $27,522,000 after acquiring an additional 2,954,350 shares during the period. Finally, Senvest Management LLC increased its stake in VNET Group by 211.7% during the first quarter. Senvest Management LLC now owns 2,779,637 shares of the information technology services provider’s stock worth $23,321,000 after acquiring an additional 1,887,883 shares during the last quarter. 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 China-based provider of data center and information technology infrastructure services. The company operates carrier-neutral data centers that support enterprise customers, cloud service providers, internet companies, financial institutions and other organizations requiring secure, reliable computing and network capacity.

Its services include data center hosting and colocation, managed network services, cloud computing infrastructure, internet connectivity, content delivery and related information technology solutions.