VNET Group (NASDAQ:VNET) Shares Down 4.7% – Should You Sell?

VNET Group, Inc. – Unsponsored ADR (NASDAQ:VNET)’s stock price traded down 4.7% on Tuesday . The company traded as low as $8.80 and last traded at $8.7670. 1,174,116 shares traded hands during mid-day trading, a decline of 82% from the average session volume of 6,449,670 shares. The stock had previously closed at $9.20.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on VNET. Jefferies Financial Group reissued a “buy” rating and set a $23.55 price objective on shares of VNET Group in a research note on Monday, March 16th. Weiss Ratings reissued a “sell (d-)” rating on shares of VNET Group in a research note on Friday, March 27th. Finally, Bank of America reissued a “buy” rating on shares of VNET Group in a research note on Monday, March 16th. Two research analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $18.08.

VNET Group Trading Down 5.2%

The firm has a market cap of $2.35 billion, a PE ratio of -30.09 and a beta of 0.16. The company has a debt-to-equity ratio of 2.68, a quick ratio of 0.92 and a current ratio of 0.92. The stock has a 50-day simple moving average of $10.11 and a two-hundred day simple moving average of $9.77.

VNET Group (NASDAQ:VNET) last announced its earnings results on Monday, March 16th. The information technology services provider reported $0.00 earnings per share for the quarter, missing analysts’ consensus estimates of $0.04 by ($0.04). The company had revenue of $384.07 million for the quarter, compared to analysts’ expectations of $368.64 million. VNET Group had a negative net margin of 2.48% and a positive return on equity of 1.36%. As a group, sell-side analysts anticipate that VNET Group, Inc. – Unsponsored ADR will post 0.23 EPS for the current year.

Insider Buying and Selling at VNET Group

In related news, Director David Lifeng Chen sold 83,544 shares of the firm’s stock in a transaction on Monday, March 23rd. The shares were sold at an average price of $1.51, for a total value of $126,151.44. Following the completion of the transaction, the director directly owned 334,164 shares of the company’s stock, valued at approximately $504,587.64. This trade represents a 20.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Company insiders own 12.10% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Norges Bank purchased a new stake in shares of VNET Group in the fourth quarter valued at approximately $65,650,000. Temasek Holdings Private Ltd lifted its position in shares of VNET Group by 988.7% during the fourth quarter. Temasek Holdings Private Ltd now owns 3,253,150 shares of the information technology services provider’s stock valued at $27,522,000 after buying an additional 2,954,350 shares during the last quarter. BNP Paribas Financial Markets lifted its position in shares of VNET Group by 674.8% during the second quarter. BNP Paribas Financial Markets now owns 3,343,088 shares of the information technology services provider’s stock valued at $23,067,000 after buying an additional 2,911,604 shares during the last quarter. Farallon Capital Management LLC raised its stake in VNET Group by 83.3% in the 3rd quarter. Farallon Capital Management LLC now owns 5,489,120 shares of the information technology services provider’s stock worth $56,703,000 after acquiring an additional 2,495,000 shares during the last quarter. Finally, JPMorgan Chase & Co. raised its stake in VNET Group by 1,750.9% in the 4th quarter. JPMorgan Chase & Co. now owns 2,502,622 shares of the information technology services provider’s stock worth $21,172,000 after acquiring an additional 2,367,410 shares during the last quarter. 72.83% of the stock is 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.