A better buy-in window may exist right now for VNET Group Inc. (VNET)

VNET Group Inc. (NASDAQ: VNET) stock fell -0.66% on Monday to $3.02 against a previous-day closing price of $3.04. With 0.53 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.35 million shares. During the session, the Information Technology Services company that operates in wider Technology sector, reached to the highest price of $3.0500 whereas the lowest price it dropped to was $2.9250. The 52-week range on VNET shows that it touched its highest point at $6.83 and its lowest point at $2.53 during that stretch. It currently has a 1-year price target of $4.64. Beta for the stock currently stands at -0.20.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of VNET was down-trending over the past week, with a drop of -5.63%, but this was down by -2.58% over a month. Three-month performance dropped to -8.76% while six-month performance fell -6.79%. The stock lost -50.49% in the past year, while it has lost -46.74% so far this year. A look at the trailing 12-month EPS for VNET yields -0.61 with Next year EPS estimates of -0.70. For the next quarter, that number is -0.07. This implies an EPS growth rate of -261.40% for this year and 0.00% for next year. EPS is expected to grow by 4.52% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 5.30%.

Float and Shares Shorts:

At present, 148.12 million VNET shares are outstanding with a float of 124.27 million shares on hand for trading. On Aug 30, 2023, short shares totaled 5.92 million, which was 3.99% higher than short shares on Jul 30, 2023. In addition to Mr. Sheng Chen as the firm’s Co-Founder & Exec. Chairman, Mr. Jie Dong serves as its Chief Exec. Officer.

Institutional Ownership:

Through their ownership of 66.79% of VNET’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 27.28% of VNET, in contrast to 20.87% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in VNET with 8.02% of the stake, FIL Investment Advisors holds 11,458,584 shares worth 11,458,584. A second-largest stockholder of VNET, MY.Alpha Management, holds 6,617,825 shares, controlling over 4.63% of the firm’s shares. Millennium Management LLC is the third largest shareholder in VNET, holding 4,465,720 shares or 3.13% stake. With a 3.57% stake in VNET, the Fidelity China Special Situations is the largest stakeholder. A total of 5,099,474 shares are owned by the mutual fund manager. The Fidelity Funds SICAV – Global Tec, which owns about 3.48% of VNET stock, is the second-largest Mutual Fund holder. It holds 4,971,582 shares valued at 18.64 million. Fidelity Funds SICAV – Pacific Fu holds 1.47% of the stake in VNET, owning 2,093,024 shares worth 7.85 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, VNET reported revenue of $1.72B and operating income of $36.06M. The EBITDA in the recently reported quarter was $430.63M and diluted EPS was -$2.58.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for VNET since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With VNET analysts setting a high price target of $59.68 and a low target of $21.83, the average target price over the next 12 months is $35.08. Based on these targets, VNET could surge 1876.16% to reach the target high and rise by 622.85% to reach the target low. Reaching the average price target will result in a growth of 1061.59% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

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