VNET Group (NASDAQ:VNET) Shares Down 8.8% – Should You Sell?

VNET Group, Inc. – Unsponsored ADR (NASDAQ:VNET)’s share price was down 8.8% during mid-day trading on Friday . The stock traded as low as $8.68 and last traded at $8.74. Approximately 6,773,718 shares traded hands during trading, a decline of 13% from the average daily volume of 7,791,087 shares. The stock had previously closed at $9.58.

Analyst Ratings Changes

Several analysts have recently weighed in on VNET shares. Weiss Ratings reiterated a “sell (d+)” rating on shares of VNET Group in a research note on Wednesday. Bank of America lifted their price objective on shares of VNET Group from $11.80 to $12.60 and gave the company a “buy” rating in a research note on Friday, August 22nd. Finally, Wall Street Zen upgraded shares of VNET Group from a “sell” rating to a “hold” rating in a research note on Friday, October 3rd. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, VNET Group presently has an average rating of “Moderate Buy” and an average price target of $11.15.

VNET Group Trading Down 11.6%

The firm’s 50-day moving average is $8.88 and its 200-day moving average is $7.37. The company has a current ratio of 0.97, a quick ratio of 0.97 and a debt-to-equity ratio of 2.40. The firm has a market cap of $2.28 billion, a price-to-earnings ratio of -105.81, a P/E/G ratio of 4.91 and a beta of 0.20.

VNET Group (NASDAQ:VNET) last posted its quarterly earnings results on Thursday, August 21st. The information technology services provider reported ($0.01) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.02 by ($0.03). VNET Group had a net margin of 0.74% and a return on equity of 0.98%. The business had revenue of $339.65 million during the quarter, compared to analyst estimates of $2.27 billion. VNET Group has set its FY 2025 guidance at EPS. As a group, sell-side analysts anticipate that VNET Group, Inc. – Unsponsored ADR will post -0.06 EPS for the current fiscal year.

VNET Group announced that its board has initiated a stock repurchase plan on Friday, June 27th that allows the company to repurchase $0.00 in shares. This repurchase authorization allows the information technology services provider to reacquire shares of its stock through open market purchases. Shares repurchase plans are often an indication that the company’s management believes its stock is undervalued.

Hedge Funds Weigh In On VNET Group

A number of hedge funds have recently bought and sold shares of the company. EverSource Wealth Advisors LLC boosted its holdings in VNET Group by 52.2% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 4,157 shares of the information technology services provider’s stock worth $29,000 after acquiring an additional 1,426 shares during the last quarter. Public Employees Retirement System of Ohio raised its stake in VNET Group by 16.8% in the 2nd quarter. Public Employees Retirement System of Ohio now owns 14,600 shares of the information technology services provider’s stock valued at $101,000 after acquiring an additional 2,100 shares during the period. Bingham Private Wealth LLC increased its position in shares of VNET Group by 24.3% during the second quarter. Bingham Private Wealth LLC now owns 13,050 shares of the information technology services provider’s stock valued at $90,000 after buying an additional 2,547 shares during the period. Main Management ETF Advisors LLC increased its position in shares of VNET Group by 1.7% during the second quarter. Main Management ETF Advisors LLC now owns 168,548 shares of the information technology services provider’s stock valued at $1,163,000 after buying an additional 2,736 shares during the period. Finally, Personal CFO Solutions LLC increased its position in shares of VNET Group by 9.3% during the second quarter. Personal CFO Solutions LLC now owns 34,505 shares of the information technology services provider’s stock valued at $238,000 after buying an additional 2,933 shares during the period. 72.83% of the stock is owned by hedge funds and other institutional investors.

About VNET Group

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.