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

VNET Group, Inc. (NASDAQ:VNET) shares gapped down before the market opened 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 changing hands.

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

Analyst Upgrades and Downgrades

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

Hedge Funds Weigh In On VNET Group

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. 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 buying an additional 4,939 shares during the period. Point72 Asia Singapore Pte. Ltd. bought a new stake in shares of VNET Group in the 4th quarter worth about $41,000. Catalina Capital Group LLC acquired a new position in VNET Group during the 4th quarter worth about $54,000. Wolverine Trading LLC acquired a new position in VNET Group during the 3rd quarter valued at about $46,000. Finally, Hsbc Holdings PLC acquired a new stake in shares of VNET Group in the 4th quarter valued at approximately $66,000. Institutional investors own 72.83% of the company’s stock.

VNET Group Stock Down 5.3 %

The firm has a market capitalization of $2.68 billion, a price-to-earnings ratio of -4.62, a P/E/G ratio of 1.01 and a beta of 0.06. The business’s 50-day moving average is $8.99 and its two-hundred day moving average is $5.47. The company has a debt-to-equity ratio of 1.46, a quick ratio of 0.83 and a current ratio of 0.83.

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.