VNET Group Inc. [VNET] Revenue clocked in at $907.60 million, up 2.77% YTD: What’s Next?


VNET Group Inc. [NASDAQ: VNET] gained 0.98% on the last trading session, reaching $9.28 price per share at the time. The company report on December 13, 2021 that VNET Announces Joint Venture with a Sovereign Wealth Fund to Develop and Operate Build-to-Suit Hyperscale Data Centers in China.

VNET Group, Inc. (Nasdaq: VNET) (“VNET” or the “Company”), a leading carrier- and cloud-neutral Internet data center services provider in China, today announced that it has signed a master joint venture investment agreement (the “Master Agreement”) with a sovereign wealth fund (the “Partner”) to form joint ventures (the “JVs”) to pursue development and investment opportunities in multiple build-to-suit hyperscale data center projects in China.

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Pursuant to the Master Agreement, VNET will establish individual project companies to undertake the development of each data center. Upon completion of the development of each data center, VNET will transfer 49% equity interest in each project company subject to certain conditions. VNET will hold the remaining 51% equity interest of each project company. Meanwhile, VNET will also provide management and operating services to all the JVs. The first targeted capital commitments from VNET and the Partner in respect of the investments under the Master Agreement are expected to reach RMB 5 billion.

VNET Group Inc. represents 143.94 million in outstanding shares, while the company has a total market value of $1.48 billion with the latest information. VNET stock price has been found in the range of $9.17 to $9.74.

If compared to the average trading volume of 1.66M shares, VNET reached a trading volume of 5119620 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about VNET Group Inc. [VNET]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for VNET shares is $26.39 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on VNET stock is a recommendation set at 1.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

HSBC Securities have made an estimate for VNET Group Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on November 22, 2021. While these analysts kept the previous recommendation, Goldman dropped their target price from $32.80 to $11.50. The new note on the price target was released on November 19, 2021, representing the official price target for VNET Group Inc. stock. Previously, the target price had yet another raise to $18.50, while HSBC Securities analysts kept a Hold rating on VNET stock.

The Average True Range (ATR) for VNET Group Inc. is set at 0.80, with the Price to Sales ratio for VNET stock in the period of the last 12 months amounting to 1.63. The Price to Book ratio for the last quarter was 1.21, with the Price to Cash per share for the same quarter was set at 3.43.

Trading performance analysis for VNET stock

VNET Group Inc. [VNET] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 12.62. With this latest performance, VNET shares gained by 13.03% in over the last four-week period, additionally sinking by -50.77% over the last 6 months – not to mention a drop of -76.34% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for VNET stock in for the last two-week period is set at 48.33, with the RSI for the last a single of trading hit 56.35, and the three-weeks RSI is set at 44.02 for VNET Group Inc. [VNET]. The present Moving Average for the last 50 days of trading for this stock 11.24, while it was recorded at 8.95 for the last single week of trading, and 18.84 for the last 200 days.

VNET Group Inc. [VNET]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and VNET Group Inc. [VNET] shares currently have an operating margin of +3.95 and a Gross Margin at +21.09. VNET Group Inc.’s Net Margin is presently recorded at -56.11.

Return on Total Capital for VNET is now 1.43, given the latest momentum, and Return on Invested Capital for the company is -25.87. Return on Equity for this stock declined to -45.78, with Return on Assets sitting at -15.66. When it comes to the capital structure of this company, VNET Group Inc. [VNET] has a Total Debt to Total Equity ratio set at 125.65. Additionally, VNET Total Debt to Total Capital is recorded at 55.68, with Total Debt to Total Assets ending up at 42.58. Long-Term Debt to Equity for the company is recorded at 79.74, with the Long-Term Debt to Total Capital now at 35.34.

Reflecting on the efficiency of the workforce at the company, VNET Group Inc. [VNET] managed to generate an average of -$151,032 per employee. Receivables Turnover for the company is 2.69 with a Total Asset Turnover recorded at a value of 0.28.VNET Group Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.10 and a Current Ratio set at 1.10.

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An analysis of insider ownership at VNET Group Inc. [VNET]

There are presently around $945 million, or 83.40% of VNET stock, in the hands of institutional investors. The top three institutional holders of VNET stocks are: TT INTERNATIONAL with ownership of 12,106,908, which is approximately 25.24% of the company’s market cap and around 11.25% of the total institutional ownership; BLACKSTONE INC, holding 10,402,130 shares of the stock with an approximate value of $96.53 million in VNET stocks shares; and CEDERBERG CAPITAL LTD, currently with $74.54 million in VNET stock with ownership of nearly 4.352% of the company’s market capitalization.

Positions in VNET Group Inc. stocks held by institutional investors increased at the end of March and at the time of the March reporting period, where 93 institutional holders increased their position in VNET Group Inc. [NASDAQ:VNET] by around 25,042,230 shares. Additionally, 81 investors decreased positions by around 17,463,383 shares, while 5 investors held positions by with 59,350,830 shares. The mentioned changes placed institutional holdings at 101,856,443 shares, according to the latest SEC report filing. VNET stock had 17 new institutional investments in for a total of 8,954,797 shares, while 42 institutional investors sold positions of 9,822,063 shares during the same period.