Kingsoft Cloud (NASDAQ:KC) Shares Gap Up – Should You Buy?

Kingsoft Cloud Holdings Limited Sponsored ADR (NASDAQ:KC)’s stock price gapped up before the market opened on Wednesday . The stock had previously closed at $10.84, but opened at $12.27. Kingsoft Cloud shares last traded at $11.8050, with a volume of 645,480 shares trading hands.

Wall Street Analysts Forecast Growth

Several research firms recently commented on KC. Jefferies Financial Group reissued a “buy” rating on shares of Kingsoft Cloud in a research report on Wednesday. Morgan Stanley started coverage on shares of Kingsoft Cloud in a research note on Tuesday, July 7th. They set an “overweight” rating and a $15.00 price objective on the stock. Bank of America reissued a “buy” rating on shares of Kingsoft Cloud in a research report on Wednesday. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Kingsoft Cloud in a research note on Friday, July 17th. Five equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $17.15.

Kingsoft Cloud Stock Performance

The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.37. The company has a 50 day moving average of $10.43 and a 200 day moving average of $12.85. The firm has a market cap of $3.45 billion, a price-to-earnings ratio of -40.78 and a beta of 1.99.

Kingsoft Cloud (NASDAQ:KC) last issued its quarterly earnings results on Friday, May 15th. The company reported ($0.17) EPS for the quarter. Kingsoft Cloud had a negative net margin of 5.49% and a negative return on equity of 8.02%. The business had revenue of $392.15 million during the quarter. As a group, equities research analysts expect that Kingsoft Cloud Holdings Limited Sponsored ADR will post -0.36 EPS for the current fiscal year.

Insider Activity at Kingsoft Cloud

In other news, CEO Tao Zou sold 300,000 shares of the stock in a transaction that occurred on Friday, July 17th. The stock was sold at an average price of $0.64, for a total transaction of $192,000.00. Following the completion of the transaction, the chief executive officer directly owned 1,700,000 shares in the company, valued at approximately $1,088,000. This represents a 15.00% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Company insiders own 14.20% of the company’s stock.

Institutional Trading of Kingsoft Cloud

Several institutional investors have recently added to or reduced their stakes in the stock. The Manufacturers Life Insurance Company acquired a new stake in shares of Kingsoft Cloud in the 1st quarter valued at about $9,456,000. Maxi Investments CY Ltd bought a new position in shares of Kingsoft Cloud during the fourth quarter worth about $5,980,000. XY Capital Ltd grew its stake in Kingsoft Cloud by 84.2% in the first quarter. XY Capital Ltd now owns 274,946 shares of the company’s stock worth $3,673,000 after purchasing an additional 125,671 shares in the last quarter. Baader Bank Aktiengesellschaft acquired a new position in Kingsoft Cloud in the first quarter worth about $2,405,000. Finally, Matthews International Capital Management LLC bought a new stake in Kingsoft Cloud in the first quarter valued at about $2,944,000. 13.40% of the stock is owned by institutional investors and hedge funds.

Kingsoft Cloud Company Profile

Kingsoft Cloud Holdings Limited (NASDAQ: KC) is a leading provider of cloud computing services in China, offering a comprehensive suite of infrastructure and platform solutions to enterprise customers. Established in 2012 as a subsidiary of Kingsoft Corporation, the company has grown into an independent public entity with dual listings, serving as a critical backbone for digital transformation across multiple industries. Headquartered in Beijing, Kingsoft Cloud leverages advanced technologies to optimize cloud operations and deliver scalable, reliable services.

The company’s core offerings span Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS), encompassing compute, storage, database, content delivery networks (CDN) and security solutions.