Kingsoft Cloud (NASDAQ:KC) Sees Unusually-High Trading Volume Following Strong Earnings

Shares of Kingsoft Cloud Holdings Limited (NASDAQ:KC) saw strong trading volume on Wednesday following a stronger than expected earnings report. 3,180,534 shares were traded during mid-day trading, an increase of 36% from the previous session’s volume of 2,342,391 shares.The stock last traded at $18.93 and had previously closed at $18.09.

The company reported ($0.05) earnings per share for the quarter, beating the consensus estimate of ($0.11) by $0.06. Kingsoft Cloud had a negative return on equity of 19.13% and a negative net margin of 28.41%. The firm had revenue of $2.23 billion during the quarter, compared to the consensus estimate of $2.11 billion. During the same quarter in the previous year, the company posted $0.08 earnings per share. The business’s revenue was up 29.6% on a year-over-year basis.

Analysts Set New Price Targets

Several analysts have weighed in on the company. Nomura downgraded Kingsoft Cloud from a “buy” rating to a “neutral” rating in a research report on Monday, March 3rd. Nomura Securities downgraded Kingsoft Cloud from a “strong-buy” rating to a “hold” rating in a research report on Monday, March 3rd. Finally, UBS Group upgraded Kingsoft Cloud from a “neutral” rating to a “buy” rating and boosted their price objective for the company from $4.20 to $12.50 in a research report on Friday, December 6th. Three analysts have rated the stock with a hold rating and four have issued a buy rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $5.93.

Hedge Funds Weigh In On Kingsoft Cloud

Hedge funds and other institutional investors have recently made changes to their positions in the business. D. E. Shaw & Co. Inc. purchased a new stake in Kingsoft Cloud in the fourth quarter worth $21,076,000. Voloridge Investment Management LLC purchased a new stake in Kingsoft Cloud in the fourth quarter worth $16,345,000. Millennium Management LLC grew its stake in Kingsoft Cloud by 4,098.3% in the fourth quarter. Millennium Management LLC now owns 895,004 shares of the company’s stock worth $9,389,000 after purchasing an additional 873,686 shares during the period. Connor Clark & Lunn Investment Management Ltd. grew its stake in Kingsoft Cloud by 628.2% in the fourth quarter. Connor Clark & Lunn Investment Management Ltd. now owns 806,902 shares of the company’s stock worth $8,464,000 after purchasing an additional 696,094 shares during the period. Finally, Two Sigma Investments LP purchased a new stake in Kingsoft Cloud in the fourth quarter worth $6,378,000. Institutional investors own 13.40% of the company’s stock.

Kingsoft Cloud Stock Performance

The company has a market capitalization of $4.89 billion, a PE ratio of -16.06 and a beta of 2.23. The company has a 50 day moving average of $15.11 and a two-hundred day moving average of $8.72. The company has a debt-to-equity ratio of 0.10, a current ratio of 0.67 and a quick ratio of 0.67.

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.