VNET Group (NASDAQ:VNET) Stock Price Down 13.2% – Here’s Why

VNET Group, Inc. (NASDAQ:VNET) shares traded down 13.2% during mid-day trading on Friday . The stock traded as low as $3.73 and last traded at $3.76. 564,396 shares were traded during mid-day trading, a decline of 63% from the average session volume of 1,545,161 shares. The stock had previously closed at $4.33.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the company. HSBC raised VNET Group from a “hold” rating to a “buy” rating and set a $5.20 price objective for the company in a research report on Wednesday, October 9th. Citigroup began coverage on VNET Group in a research report on Wednesday, September 4th. They set a “buy” rating and a $4.00 price target for the company. Hsbc Global Res upgraded shares of VNET Group to a “strong-buy” rating in a report on Wednesday, October 9th. Finally, StockNews.com upgraded shares of VNET Group from a “sell” rating to a “hold” rating in a report on Wednesday, August 21st. One analyst has rated the stock with a hold rating, three have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Buy” and an average price target of $3.97.

VNET Group Stock Performance

The stock has a market capitalization of $965.25 million, a P/E ratio of -1.69, a P/E/G ratio of 8.96 and a beta of -0.27. The stock has a 50 day simple moving average of $3.62 and a two-hundred day simple moving average of $2.66. The company has a quick ratio of 0.87, a current ratio of 0.83 and a debt-to-equity ratio of 1.46.

VNET Group (NASDAQ:VNET) last issued its earnings results on Tuesday, August 27th. The information technology services provider reported $0.06 earnings per share for the quarter, topping analysts’ consensus estimates of $0.01 by $0.05. The business had revenue of $274.35 million for the quarter, compared to the consensus estimate of $266.56 million. VNET Group had a negative net margin of 28.54% and a negative return on equity of 5.68%. On average, equities analysts forecast that VNET Group, Inc. will post -0.01 EPS for the current fiscal year.

Institutional Investors Weigh In On VNET Group

Several hedge funds have recently bought and sold shares of the company. Ballentine Partners LLC acquired a new stake in shares of VNET Group in the second quarter valued at approximately $36,000. AXA S.A. acquired a new stake in VNET Group during the 2nd quarter valued at $65,000. Millennium Management LLC boosted its position in VNET Group by 89.1% during the second quarter. Millennium Management LLC now owns 2,973,358 shares of the information technology services provider’s stock worth $6,229,000 after purchasing an additional 1,400,683 shares during the period. SG Americas Securities LLC acquired a new position in shares of VNET Group in the third quarter valued at $262,000. Finally, Inspire Investing LLC bought a new position in shares of VNET Group in the third quarter valued at about $1,092,000. 72.83% of the stock is currently owned by institutional investors and hedge funds.

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.