Kingsoft Cloud (NASDAQ:KC) Shares Gap Down – Here’s Why

Kingsoft Cloud Holdings Limited (NASDAQ:KC) shares 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 changing hands.

Wall Street Analysts Forecast Growth

A number of analysts have commented on the stock. UBS Group raised shares of Kingsoft Cloud from a “neutral” rating to a “buy” rating and upped their price target for the company from $4.20 to $12.50 in a research 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 two have assigned a buy rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $6.55.

Kingsoft Cloud Stock Down 6.4 %

The company has a debt-to-equity ratio of 0.10, a quick ratio of 0.67 and a current ratio of 0.67. The company has a market cap of $3.91 billion, a price-to-earnings ratio of -12.86 and a beta of 2.23. The stock’s fifty day moving average is $15.49 and its two-hundred day moving average is $8.94.

Kingsoft Cloud (NASDAQ:KC) last posted its earnings results on Wednesday, March 19th. The company reported ($0.05) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.11) by $0.06. The company had revenue of $2.23 billion for the quarter, compared to analyst estimates of $2.11 billion. Kingsoft Cloud had a negative net margin of 28.41% and a negative return on equity of 19.13%. The firm’s revenue was up 29.6% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.08 EPS. Sell-side analysts predict that Kingsoft Cloud Holdings Limited will post -0.63 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Kingsoft Cloud

Several institutional investors and hedge funds have recently added to or reduced their stakes in KC. D. E. Shaw & Co. Inc. purchased a new stake in Kingsoft Cloud in the 4th quarter valued at about $21,076,000. Voloridge Investment Management LLC purchased a new stake in Kingsoft Cloud in the 4th quarter valued at about $16,345,000. Millennium Management LLC increased its stake in Kingsoft Cloud by 4,098.3% in the 4th quarter. Millennium Management LLC now owns 895,004 shares of the company’s stock valued at $9,389,000 after buying an additional 873,686 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. increased its stake in Kingsoft Cloud by 628.2% in the 4th quarter. Connor Clark & Lunn Investment Management Ltd. now owns 806,902 shares of the company’s stock valued at $8,464,000 after buying an additional 696,094 shares during the last quarter. Finally, Two Sigma Investments LP bought a new position in shares of Kingsoft Cloud during the 4th quarter valued at approximately $6,378,000. Hedge funds and other institutional investors own 13.40% of the company’s stock.

Kingsoft Cloud Company Profile

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.