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

VNET Group, Inc. (NASDAQ:VNET) gapped down prior to trading on Wednesday . The stock had previously closed at $10.94, but opened at $10.30. VNET Group shares last traded at $10.11, with a volume of 2,621,366 shares.

Wall Street Analyst Weigh In

VNET has been the topic of several recent analyst reports. The Goldman Sachs Group raised shares of VNET Group from a “neutral” rating to a “buy” rating and increased their price objective for the company from $3.10 to $5.00 in a report on Friday, November 29th. Nomura Securities raised shares of VNET Group to a “strong-buy” rating in a research note on Friday, February 21st. StockNews.com lowered VNET Group from a “hold” rating to a “sell” rating in a research note on Friday, March 14th. UBS Group raised their target price on VNET Group from $6.40 to $7.00 and gave the company a “buy” rating in a research report on Friday, November 29th. Finally, Citigroup lifted their price target on VNET Group from $16.10 to $20.00 and gave the stock a “buy” rating in a research note on Friday, March 14th. One analyst has rated the stock with a sell rating, five have given a buy rating and two have issued a strong buy rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Buy” and a consensus price target of $7.98.

VNET Group Stock Down 8.9 %

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 firm has a market capitalization of $2.56 billion, a PE ratio of -4.48, a price-to-earnings-growth ratio of 1.01 and a beta of 0.07. The business has a 50-day moving average price of $9.46 and a 200-day moving average price of $5.74.

VNET Group (NASDAQ:VNET) last issued its earnings results on Wednesday, March 12th. The information technology services provider reported ($0.01) earnings per share (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%. The company had revenue of $307.75 million during the quarter, compared to analysts’ expectations of $284.88 million. Equities research analysts forecast that VNET Group, Inc. will post -0.06 earnings per share for the current fiscal year.

Hedge Funds Weigh In On VNET Group

A number of institutional investors have recently bought and sold shares of VNET. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in shares of VNET Group during the 3rd quarter worth approximately $199,000. Walleye Capital LLC acquired a new stake in VNET Group during the third quarter worth $115,000. Wolverine Trading LLC purchased a new stake in VNET Group in the third quarter valued at $46,000. XTX Topco Ltd acquired a new position in shares of VNET Group in the 3rd quarter valued at $343,000. Finally, Anson Funds Management LP grew its holdings in shares of VNET Group by 84.9% during the 3rd quarter. Anson Funds Management LP now owns 450,000 shares of the information technology services provider’s stock worth $1,836,000 after purchasing an additional 206,580 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.