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

Kingsoft Cloud Holdings Limited (NASDAQ:KC)’s share price gapped down before the market opened on Monday . The stock had previously closed at $5.05, but opened at $4.39. Kingsoft Cloud shares last traded at $4.28, with a volume of 722,689 shares trading hands.

Wall Street Analyst Weigh In

Separately, Bank of America cut their price target on Kingsoft Cloud from $3.80 to $3.20 and set a “neutral” rating for the company in a research note on Wednesday, August 21st. One equities research analyst has rated the stock with a hold rating and four have assigned a buy rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $4.10.

Kingsoft Cloud Stock Down 12.1 %

The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.03. The company has a 50-day simple moving average of $3.06 and a two-hundred day simple moving average of $2.84. The stock has a market cap of $1.13 billion, a P/E ratio of -4.15 and a beta of 2.00.

Kingsoft Cloud (NASDAQ:KC) last announced its quarterly earnings data on Tuesday, August 20th. The company reported ($0.20) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.16) by ($0.04). Kingsoft Cloud had a negative net margin of 25.33% and a negative return on equity of 24.99%. The company had revenue of $260.32 million for the quarter, compared to analysts’ expectations of $251.17 million. On average, equities analysts forecast that Kingsoft Cloud Holdings Limited will post -0.69 EPS for the current year.

Institutional Trading of Kingsoft Cloud

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Jane Street Group LLC grew its holdings in Kingsoft Cloud by 383.5% during the 3rd quarter. Jane Street Group LLC now owns 322,503 shares of the company’s stock valued at $948,000 after buying an additional 255,795 shares in the last quarter. Swedbank AB bought a new position in shares of Kingsoft Cloud during the 1st quarter valued at about $649,000. Connor Clark & Lunn Investment Management Ltd. purchased a new position in shares of Kingsoft Cloud during the third quarter valued at about $326,000. GSA Capital Partners LLP increased its holdings in shares of Kingsoft Cloud by 90.2% in the third quarter. GSA Capital Partners LLP now owns 172,415 shares of the company’s stock worth $507,000 after purchasing an additional 81,751 shares during the last quarter. Finally, XY Capital Ltd purchased a new stake in shares of Kingsoft Cloud in the third quarter worth about $214,000. 13.40% of the stock is owned by hedge funds and other institutional investors.

About Kingsoft Cloud

Kingsoft Cloud Holdings Limited provides cloud services to businesses and organizations primarily in China. The company's products portfolio includes cloud products, including infrastructure as a service (IaaS) infrastructure, platform as a service (PaaS) middleware, and software as a service (SaaS) applications that primarily consist of cloud computing, network, database, big data, security, storage, and delivery solutions.