VNET Group (NASDAQ:VNET) Shares Gap Up – Time to Buy?

VNET Group, Inc. – Unsponsored ADR (NASDAQ:VNET)’s stock price gapped up before the market opened on Tuesday . The stock had previously closed at $8.87, but opened at $9.45. VNET Group shares last traded at $9.8650, with a volume of 2,636,523 shares changing hands.

Wall Street Analyst Weigh In

Several analysts have issued reports on VNET shares. Morgan Stanley reissued an “overweight” rating and set a $16.00 price target on shares of VNET Group in a report on Wednesday, May 27th. Wall Street Zen raised VNET Group from a “sell” rating to a “hold” rating in a research note on Saturday, May 9th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of VNET Group in a research note on Friday, March 27th. Bank of America set a $16.30 price objective on VNET Group and gave the stock a “buy” rating in a research note on Tuesday, May 26th. Finally, Zacks Research raised VNET Group from a “strong sell” rating to a “hold” rating in a research note on Wednesday, May 27th. Three equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, VNET Group has a consensus rating of “Hold” and a consensus target price of $19.03.

VNET Group Stock Performance

The stock has a market cap of $2.43 billion, a P/E ratio of -6.53 and a beta of 0.24. The company has a quick ratio of 0.99, a current ratio of 0.99 and a debt-to-equity ratio of 3.99. The business has a 50 day moving average price of $9.21 and a two-hundred day moving average price of $9.77.

VNET Group (NASDAQ:VNET) last released its quarterly earnings data on Tuesday, May 26th. The information technology services provider reported ($1.20) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.03) by ($1.17). The business had revenue of $390.32 million during the quarter, compared to the consensus estimate of $388.47 million. VNET Group had a negative return on equity of 31.59% and a negative net margin of 22.01%. On average, sell-side analysts forecast that VNET Group, Inc. – Unsponsored ADR will post 0.23 earnings per share for the current fiscal year.

Insider Transactions at VNET Group

In related news, Director Sean Shao sold 60,000 shares of the business’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $1.71, for a total value of $102,600.00. Following the sale, the director directly owned 983,820 shares in the company, valued at approximately $1,682,332.20. The trade was a 5.75% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director David Lifeng Chen sold 83,544 shares of the business’s stock in a transaction dated Monday, March 23rd. The stock was sold at an average price of $1.51, for a total value of $126,151.44. Following the completion of the sale, the director owned 334,164 shares in the company, valued at $504,587.64. This represents a 20.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 152,616 shares of company stock worth $244,083 over the last quarter. 12.10% of the stock is owned by company insiders.

Institutional Investors Weigh In On VNET Group

A number of hedge funds have recently made changes to their positions in VNET. Norges Bank purchased a new stake in shares of VNET Group in the fourth quarter worth about $65,650,000. Temasek Holdings Private Ltd lifted its position in shares of 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 buying an additional 2,954,350 shares in the last quarter. BNP Paribas Financial Markets lifted its position in shares of VNET Group by 674.8% in the second quarter. BNP Paribas Financial Markets now owns 3,343,088 shares of the information technology services provider’s stock worth $23,067,000 after buying an additional 2,911,604 shares in the last quarter. Farallon Capital Management LLC lifted its position in shares of VNET Group by 83.3% in the third quarter. Farallon Capital Management LLC now owns 5,489,120 shares of the information technology services provider’s stock worth $56,703,000 after buying an additional 2,495,000 shares in the last quarter. Finally, JPMorgan Chase & Co. lifted its position in shares of VNET Group by 1,750.9% in the fourth quarter. JPMorgan Chase & Co. now owns 2,502,622 shares of the information technology services provider’s stock worth $21,172,000 after buying an additional 2,367,410 shares in the last quarter. 72.83% of the stock is currently owned by hedge funds and other institutional investors.

VNET Group Company Profile

VNET Group, Inc (NASDAQ: VNET) is a leading carrier-neutral internet data center (IDC) services provider in China. Established in 1999 and headquartered in Beijing, the company delivers a full spectrum of infrastructure solutions that support the growing digital economy. Its core offerings include data center colocation, managed hosting, network connectivity, and disaster recovery services designed to meet the performance and reliability requirements of enterprise and internet content customers.

The company’s product portfolio spans private cloud, public cloud and hybrid cloud deployments, enabling clients to scale computing resources on demand.