How VNET Group Inc. (VNET) Works From A Technical Perspective

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VNET Group Inc. (NASDAQ:VNET) traded with an addition of $0.03 to close at $5.61 on Thursday, an upside of 0.63 percent. An average of 949,058 shares of common stock have been traded in the last five days. There was a gain of $0.32 in the past week, and it reached a new high 3 times over the past 12 months. The last 20 days have seen an average of 1,649,420 shares traded, while the 50-day average volume stands at 1,723,908.

VNET stock has increased by 20.52% in the last month. The company shares reached their 1-month lowest point of $4.67 on 11/30/22. With the stock rallying to its 52-week high on 01/20/22, shares of the company touched a low of $3.51 and a high of $10.29 in 52 weeks. It has reached a new high 3 times so far this year and lost -38.21% or -$3.40 in price. In spite of this, the price is down -45.43% from the 52-week high.


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Valuation Metrics

VNET Group Inc. (VNET) stock’s beta is -0.13. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.84, the price-to-book (PB) ratio at 0.87, and the price-to-cash flow ratio at 2.57.

Financial Health

The quick ratio of VNET Group Inc. for the three months ended June 29 was 1.30, and the current ratio was 1.30, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 1.61 and a total debt to equity ratio of 1.70 for the quarter ending June 29. Its gross profit as reported stood at $225.66 million compared to revenue of $971.32 million.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, VNET Group Inc.’s return on assets was -2.90%.

Earnings Surprise

In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $78.48 million in the quarter, while revenues were grew 629.08%. The analyst consensus anticipated VNET Group Inc.’s latest quarter earnings to come in at -$0.05 per share, but it turned out to be -$0.36, a -620.00% surprise. For the quarter, EBITDA amounted to $0.9 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at VNET Group Inc. (VNET) price momentum. RSI 9-day as of the close on 28 December was 60.69%, suggesting the stock is Neutral, with historical volatility in this time frame at 59.30%.

As of today, VNET’s price is $5.66 +6.03% or $0.32 from its 5-day moving average. VNET is currently trading +12.38% higher than its 20-day SMA and +9.75% higher than its 100-day SMA. However, the stock’s current price level is +3.87% above the SMA50 and +47.38% above the SMA200.

The stochastic %K and %D were 88.53% and 91.58%, respectively, and the average true range (ATR) was 0.34. With the 14-day stochastic at 85.80% and the average true range at 0.36, the RSI (14) stands at 57.64%. The stock has reached 0.24 on the 9-day MACD Oscillator while the 14-day reading was at 0.33.

Analyst Ratings

Credit Suisse downgraded VNET Group Inc. (NASDAQ: VNET) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as an Outperform. The consensus rating for VNET Group Inc. (VNET) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell VNET, while 3 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 6 others rate it as a “buy”.

What is VNET’s price target for the next 12 months?

Analysts predict a range of price targets between $31.84 and $86.57, with a median target of $55.46. Taking a look at these predictions, the average price target given by analysts for VNET Group Inc. (VNET) stock is $54.27.

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