VNET Group Inc. [VNET] Revenue clocked in at $1.00 billion, down -47.44% YTD: What’s Next?

VNET Group Inc. [NASDAQ: VNET] stock went on a downward path that fall over -11.57% on Wednesday, amounting to a one-week price decrease of less than -5.40%. The company report on March 21, 2023 that VNET Reports Unaudited Fourth Quarter and Full Year 2022 Financial Results.

VNET Group, Inc. (Nasdaq: VNET) (“VNET” or the “Company”), a leading carrier- and cloud-neutral internet data center services provider in China, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2022.

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“We concluded a challenging 2022 with solid fourth quarter results, achieving meaningful development on a broad scale,” said Jeff Dong, Chief Executive Officer of VNET. “Amid the macro headwinds, our dual-core strategy encompassing both the wholesale and retail IDC markets continued to prove strongly effective. We continued to grow our wholesale business with two major orders totaling over 100MW, extending the service contract with one of our largest existing customers in the fourth quarter and winning a bid for an IDC project with a new customer recently. On the retail business front, we made decent progress in expanding our customer base and fueling deeper collaboration with existing customers as we have been consistently building out our high-quality service offerings. Heading into 2023, with a gradual but noticeable economic recovery, we remain optimistic about the long-term prospects of the IDC industry.”.

Over the last 12 months, VNET stock dropped by -52.24%. The one-year VNET Group Inc. stock forecast points to a potential upside of 55.39. The average equity rating for VNET stock is currently 2.10, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $417.95 million, with 148.07 million shares outstanding and 123.84 million shares in the current float. Compared to the average trading volume of 1.88M shares, VNET stock reached a trading volume of 3444239 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on 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 $6.68 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 2.10. 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.

Credit Suisse have made an estimate for VNET Group Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on September 01, 2022. The new note on the price target was released on May 25, 2022, representing the official price target for VNET Group Inc. stock. Previously, the target price had yet another raise to $17.40, while HSBC Securities analysts kept a Buy rating on VNET stock. On November 19, 2021, analysts decreased their price target for VNET shares from 32.80 to 11.50.

The Average True Range (ATR) for VNET Group Inc. is set at 0.32, with the Price to Sales ratio for VNET stock in the period of the last 12 months amounting to 0.42. The Price to Book ratio for the last quarter was 0.46. Price to Free Cash Flow for VNET in the course of the last twelve months was 1.27 with Quick ratio for the last quarter at 1.30.

VNET Stock Performance Analysis:

VNET Group Inc. [VNET] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -5.40. With this latest performance, VNET shares dropped by -34.79% in over the last four-week period, additionally sinking by -52.01% over the last 6 months – not to mention a drop of -52.24% 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 30.45, with the RSI for the last a single of trading hit 31.91, and the three-weeks RSI is set at 31.49 for VNET Group Inc. [VNET]. The present Moving Average for the last 50 days of trading for this stock 5.00, while it was recorded at 3.15 for the last single week of trading, and 5.25 for the last 200 days.

Insight into VNET Group Inc. Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and VNET Group Inc. [VNET] shares currently have an operating margin of +2.11 and a Gross Margin at +22.31. VNET Group Inc.’s Net Margin is presently recorded at +8.08.

Return on Total Capital for VNET is now 0.77, given the latest momentum, and Return on Invested Capital for the company is 3.45. Return on Equity for this stock inclined to 7.25, with Return on Assets sitting at 2.35. When it comes to the capital structure of this company, VNET Group Inc. [VNET] has a Total Debt to Total Equity ratio set at 156.53. Additionally, VNET Total Debt to Total Capital is recorded at 61.02, with Total Debt to Total Assets ending up at 49.09. Long-Term Debt to Equity for the company is recorded at 136.50, with the Long-Term Debt to Total Capital now at 53.21.

Reflecting on the efficiency of the workforce at the company, VNET Group Inc. [VNET] managed to generate an average of $24,074 per employee. Receivables Turnover for the company is 2.82 with a Total Asset Turnover recorded at a value of 0.29.VNET Group Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.30 and a Current Ratio set at 1.30.

VNET Group Inc. [VNET] Insider Position Details

There are presently around $277 million, or 76.20% of VNET stock, in the hands of institutional investors. The top three institutional holders of VNET stocks are: FIL LTD with ownership of 14,285,789, which is approximately 5.799% of the company’s market cap and around 13.33% of the total institutional ownership; BLACKSTONE INC., holding 10,402,130 shares of the stock with an approximate value of $31.0 million in VNET stocks shares; and TT INTERNATIONAL, currently with $27.14 million in VNET stock with ownership of nearly -3.505% of the company’s market capitalization.

Positions in VNET Group Inc. stocks held by institutional investors increased at the end of Tuesday and at the time of the Tuesday reporting period, where 56 institutional holders increased their position in VNET Group Inc. [NASDAQ:VNET] by around 14,760,618 shares. Additionally, 57 investors decreased positions by around 16,216,802 shares, while 12 investors held positions by with 61,924,432 shares. The mentioned changes placed institutional holdings at 92,901,852 shares, according to the latest SEC report filing. VNET stock had 21 new institutional investments in for a total of 4,778,055 shares, while 16 institutional investors sold positions of 6,452,428 shares during the same period.


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