VNET Group (NASDAQ:VNET) Shares Gap Down – Here’s Why

VNET Group, Inc. (NASDAQ:VNET) gapped down prior to trading on Wednesday . The stock had previously closed at $10.94, but opened at $10.30. VNET Group shares last traded at $10.11, with a volume of 2,621,366 shares changing hands.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on VNET shares. StockNews.com cut VNET Group from a “hold” rating to a “sell” rating in a research note on Friday, March 14th. Citigroup upped their target price on VNET Group from $16.10 to $20.00 and gave the stock a “buy” rating in a research report on Friday, March 14th. The Goldman Sachs Group raised VNET Group from a “neutral” rating to a “buy” rating and upped their target price for the stock from $3.10 to $5.00 in a research report on Friday, November 29th. UBS Group upped their target price on VNET Group from $6.40 to $7.00 and gave the stock a “buy” rating in a research report on Friday, November 29th. Finally, Nomura Securities raised VNET Group to a “strong-buy” rating in a research report on Friday, February 21st. One research analyst has rated the stock with a sell rating, four have assigned a buy rating and two have issued a strong buy rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Buy” and a consensus price target of $9.30.

VNET Group Trading Down 10.1 %

The company has a market capitalization of $2.28 billion, a price-to-earnings ratio of -3.99, a price-to-earnings-growth ratio of 1.01 and a beta of 0.07. The business has a fifty day moving average price of $9.60 and a 200 day moving average price of $5.79. The company has a debt-to-equity ratio of 1.46, a current ratio of 0.83 and a quick ratio of 0.83.

VNET Group (NASDAQ:VNET) last issued its quarterly earnings results on Wednesday, March 12th. The information technology services provider reported ($0.01) EPS for the quarter, missing analysts’ consensus estimates of $0.03 by ($0.04). VNET Group had a negative return on equity of 5.68% and a negative net margin of 28.54%. The business had revenue of $307.75 million for the quarter, compared to analyst estimates of $284.88 million. On average, equities analysts expect that VNET Group, Inc. will post -0.06 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of VNET. Barclays PLC raised its stake in shares of VNET Group by 229.3% in the fourth quarter. Barclays PLC now owns 7,093 shares of the information technology services provider’s stock valued at $34,000 after purchasing an additional 4,939 shares in the last quarter. Point72 Asia Singapore Pte. Ltd. acquired a new position in shares of VNET Group in the fourth quarter valued at $41,000. Wolverine Trading LLC acquired a new position in shares of VNET Group in the third quarter valued at $46,000. Catalina Capital Group LLC acquired a new position in shares of VNET Group in the fourth quarter valued at $54,000. Finally, Hsbc Holdings PLC acquired a new position in shares of VNET Group in the fourth quarter valued at $66,000. 72.83% of the stock is currently owned by institutional investors and hedge funds.

VNET Group Company Profile

VNET Group, Inc, an investment holding company, provides hosting and related services in China. It offers managed hosting services consisting of managed retail services, such as colocation services that dedicate data center space to house customers' servers and networking equipment, as well as allow customers to lease partial or entire cabinets for their servers; interconnectivity services that allow customers to connect their servers; value-added services, including hybrid IT, bare metal, firewall, server load balancing, data backup and recovery, data center management, server management, and backup server services; cloud services that allow customers to run applications over the internet using IT infrastructure; and VPN Services that extend customers' private networks by setting up connections through the public internet.