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

Kingsoft Cloud Holdings Limited (NASDAQ:KC) shares gapped down before the market opened on Tuesday . The stock had previously closed at $4.80, but opened at $4.55. Kingsoft Cloud shares last traded at $4.40, with a volume of 581,273 shares.

Wall Street Analysts Forecast Growth

Separately, Bank of America lowered their target price on Kingsoft Cloud from $3.80 to $3.20 and set a “neutral” rating for the company in a report on Wednesday, August 21st. One investment analyst has rated the stock with a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $4.10.

Kingsoft Cloud Stock Down 15.0 %

The business’s fifty day moving average price is $2.87 and its two-hundred day moving average price is $2.80. The company has a debt-to-equity ratio of 0.03, a quick ratio of 0.84 and a current ratio of 0.84. The firm has a market capitalization of $1.04 billion, a P/E ratio of -4.27 and a beta of 2.00.

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

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in KC. Swedbank AB acquired a new stake in shares of Kingsoft Cloud during the 1st quarter worth approximately $649,000. SG Americas Securities LLC acquired a new position in shares of Kingsoft Cloud in the 3rd quarter valued at $47,000. Blue Trust Inc. increased its position in shares of Kingsoft Cloud by 30.9% during the 3rd quarter. Blue Trust Inc. now owns 18,888 shares of the company’s stock worth $56,000 after purchasing an additional 4,458 shares during the last quarter. Headlands Technologies LLC increased its position in shares of Kingsoft Cloud by 313.9% during the 2nd quarter. Headlands Technologies LLC now owns 32,875 shares of the company’s stock worth $83,000 after purchasing an additional 24,932 shares during the last quarter. Finally, Renaissance Technologies LLC raised its holdings in Kingsoft Cloud by 4.0% in the 2nd quarter. Renaissance Technologies LLC now owns 460,400 shares of the company’s stock valued at $1,156,000 after buying an additional 17,700 shares during the period. 13.40% of the stock is currently owned by institutional investors and hedge funds.

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.