Kingsoft Cloud (NASDAQ:KC) Shares Gap Down – What’s Next?

Kingsoft Cloud Holdings Limited (NASDAQ:KC)’s stock price gapped down before the market opened on Thursday . The stock had previously closed at $18.44, but opened at $17.62. Kingsoft Cloud shares last traded at $17.90, with a volume of 514,843 shares.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on the stock. UBS Group upgraded shares of Kingsoft Cloud from a “neutral” rating to a “buy” rating and lifted their price target for the stock from $4.20 to $12.50 in a report on Friday, December 6th. Nomura Securities lowered shares of Kingsoft Cloud from a “strong-buy” rating to a “hold” rating in a report on Monday, March 3rd. Finally, Nomura lowered shares of Kingsoft Cloud from a “buy” rating to a “neutral” rating in a report on Monday, March 3rd. Three equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. According to data from MarketBeat.com, Kingsoft Cloud currently has an average rating of “Moderate Buy” and a consensus target price of $5.93.

Kingsoft Cloud Trading Down 8.3 %

The company has a quick ratio of 0.67, a current ratio of 0.67 and a debt-to-equity ratio of 0.10. The stock has a market capitalization of $4.29 billion, a P/E ratio of -14.05 and a beta of 2.23. The firm’s 50 day simple moving average is $15.27 and its two-hundred day simple moving average is $8.79.

Kingsoft Cloud (NASDAQ:KC) last posted its quarterly earnings results on Wednesday, March 19th. 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 net margin of 28.41% and a negative return on equity of 19.13%. The firm had revenue of $2.23 billion during the quarter, compared to the consensus estimate of $2.11 billion. During the same period in the previous year, the firm posted $0.08 earnings per share. The business’s revenue was up 29.6% compared to the same quarter last year. As a group, analysts forecast that Kingsoft Cloud Holdings Limited will post -0.63 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Kingsoft Cloud

Hedge funds and other institutional investors have recently bought and sold shares of the stock. D. E. Shaw & Co. Inc. bought a new stake in shares of Kingsoft Cloud during the fourth quarter worth about $21,076,000. Voloridge Investment Management LLC bought a new stake in shares of Kingsoft Cloud during the fourth quarter worth about $16,345,000. Millennium Management LLC increased its position in shares of Kingsoft Cloud by 4,098.3% during the fourth quarter. Millennium Management LLC now owns 895,004 shares of the company’s stock worth $9,389,000 after acquiring an additional 873,686 shares in the last quarter. Renaissance Technologies LLC increased its position in shares of Kingsoft Cloud by 69.8% during the fourth quarter. Renaissance Technologies LLC now owns 867,934 shares of the company’s stock worth $9,105,000 after acquiring an additional 356,834 shares in the last quarter. Finally, Connor Clark & Lunn Investment Management Ltd. increased its position in shares of Kingsoft Cloud by 628.2% during the fourth quarter. Connor Clark & Lunn Investment Management Ltd. now owns 806,902 shares of the company’s stock worth $8,464,000 after acquiring an additional 696,094 shares in the last quarter. 13.40% of the stock is owned by institutional investors.

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.