VNET Group (NASDAQ:VNET) Shares Gap Down on Disappointing Earnings

Shares of VNET Group, Inc. (NASDAQ:VNET) gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $11.00, but opened at $10.00. VNET Group shares last traded at $10.09, with a volume of 6,978,067 shares.

The information technology services provider reported ($0.01) earnings per share for the quarter, missing analysts’ consensus estimates of $0.03 by ($0.04). VNET Group had a negative return on equity of 5.68% and a negative net margin of 28.54%.

Wall Street Analyst Weigh In

VNET has been the topic of a number of analyst reports. The Goldman Sachs Group upgraded shares of VNET Group from a “neutral” rating to a “buy” rating and boosted their price objective for the company from $3.10 to $5.00 in a research report on Friday, November 29th. Nomura Securities upgraded shares of VNET Group to a “strong-buy” rating in a research report on Friday, February 21st. Finally, UBS Group boosted their price objective on shares of VNET Group from $6.40 to $7.00 and gave the company a “buy” rating in a research report on Friday, November 29th. One analyst has rated the stock with a hold rating, five have assigned a buy rating and two have assigned a strong buy rating to the stock. According to MarketBeat, the stock has a consensus rating of “Buy” and an average price target of $4.78.

Institutional Trading of VNET Group

Institutional investors have recently made changes to their positions in the company. Barclays PLC increased its holdings in VNET Group by 229.3% in the 4th quarter. Barclays PLC now owns 7,093 shares of the information technology services provider’s stock valued at $34,000 after purchasing an additional 4,939 shares during the last quarter. Point72 Asia Singapore Pte. Ltd. acquired a new stake in VNET Group in the 4th quarter valued at approximately $41,000. Wolverine Trading LLC acquired a new stake in VNET Group in the 3rd quarter valued at approximately $46,000. Catalina Capital Group LLC acquired a new position in shares of VNET Group in the fourth quarter worth $54,000. Finally, Hsbc Holdings PLC acquired a new position in shares of VNET Group during the fourth quarter worth $66,000. Hedge funds and other institutional investors own 72.83% of the company’s stock.

VNET Group Trading Down 5.3 %

The stock has a market capitalization of $2.68 billion, a PE ratio of -4.62, a PEG ratio of 1.01 and a beta of 0.06. The company has a quick ratio of 0.83, a current ratio of 0.83 and a debt-to-equity ratio of 1.46. The business’s 50-day moving average is $8.99 and its two-hundred day moving average is $5.47.

VNET Group Company Profile

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.