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

VNET Group, Inc. (NASDAQ:VNET)’s share price gapped down before the market opened 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.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on VNET shares. Nomura Securities upgraded VNET Group to a “strong-buy” rating in a research note on Friday, February 21st. StockNews.com lowered VNET Group from a “hold” rating to a “sell” rating in a research note on Friday, March 14th. UBS Group increased their price objective on VNET Group from $6.40 to $7.00 and gave the stock a “buy” rating in a research note on Friday, November 29th. Citigroup increased their target price on VNET Group from $16.10 to $20.00 and gave the stock a “buy” rating in a report on Friday, March 14th. Finally, The Goldman Sachs Group upgraded VNET Group from a “neutral” rating to a “buy” rating and increased their target price for the stock from $3.10 to $5.00 in a report on Friday, November 29th. One analyst has rated the stock with a sell rating, four have given a buy rating and two have given a strong buy rating to the stock. According to MarketBeat, the stock presently has an average rating of “Buy” and an average price target of $9.30.

VNET Group Stock Down 10.1 %

The firm has a fifty day moving average price of $9.60 and a 200 day moving average price of $5.79. The company has a market cap of $2.28 billion, a P/E ratio of -3.99, a PEG ratio of 1.01 and a beta of 0.07. The company has a quick ratio of 0.83, a current ratio of 0.83 and a debt-to-equity ratio of 1.46.

VNET Group (NASDAQ:VNET) last posted its quarterly earnings results on Wednesday, March 12th. The information technology services provider reported ($0.01) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.03 by ($0.04). The firm had revenue of $307.75 million during the quarter, compared to the consensus estimate of $284.88 million. VNET Group had a negative net margin of 28.54% and a negative return on equity of 5.68%. Equities research analysts forecast that VNET Group, Inc. will post -0.06 earnings per share for the current year.

Hedge Funds Weigh In On VNET Group

Hedge funds have recently added to or reduced their stakes in the company. Geode Capital Management LLC lifted its stake in VNET Group by 237.7% in the third quarter. Geode Capital Management LLC now owns 298,539 shares of the information technology services provider’s stock valued at $1,218,000 after buying an additional 210,124 shares during the period. Asset Management One Co. Ltd. acquired a new position in VNET Group in the fourth quarter valued at about $152,000. JPMorgan Chase & Co. lifted its stake in VNET Group by 136,783.0% in the third quarter. JPMorgan Chase & Co. now owns 136,883 shares of the information technology services provider’s stock valued at $558,000 after buying an additional 136,783 shares during the period. Virtu Financial LLC acquired a new position in VNET Group in the third quarter valued at about $519,000. Finally, SG Americas Securities LLC lifted its stake in VNET Group by 534.6% in the fourth quarter. SG Americas Securities LLC now owns 407,327 shares of the information technology services provider’s stock valued at $1,931,000 after buying an additional 343,140 shares during the period. Institutional investors own 72.83% of the company’s stock.

About VNET Group

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.