Kingsoft Cloud (NASDAQ:KC) Shares Gap Down – What’s Next?

Kingsoft Cloud Holdings Limited (NASDAQ:KC) shares gapped down before the market opened on Friday . The stock had previously closed at $15.21, but opened at $14.64. Kingsoft Cloud shares last traded at $13.81, with a volume of 704,537 shares.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on the stock. UBS Group upgraded shares of Kingsoft Cloud from a “neutral” rating to a “buy” rating and lifted their price target for the company from $4.20 to $12.50 in a research report on Friday, December 6th. Nomura Securities cut Kingsoft Cloud from a “strong-buy” rating to a “hold” rating in a report on Monday, March 3rd. Finally, Nomura lowered Kingsoft Cloud from a “buy” rating to a “neutral” rating in a report on Monday, March 3rd.

Kingsoft Cloud Stock Down 8.3 %

The company has a debt-to-equity ratio of 0.10, a current ratio of 0.67 and a quick ratio of 0.67. The firm’s 50-day moving average price is $15.97 and its 200 day moving average price is $9.31. The firm has a market capitalization of $3.54 billion, a price-to-earnings ratio of -11.65 and a beta of 2.23.

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

Institutional Investors Weigh In On Kingsoft Cloud

Several hedge funds have recently modified their holdings of the company. Walleye Capital LLC purchased a new stake in Kingsoft Cloud in the 3rd quarter worth approximately $119,000. Marshall Wace LLP acquired a new stake in shares of Kingsoft Cloud during the fourth quarter worth $119,000. Vise Technologies Inc. purchased a new stake in shares of Kingsoft Cloud in the fourth quarter valued at $125,000. Cetera Investment Advisers acquired a new position in Kingsoft Cloud in the fourth quarter valued at $138,000. Finally, Mirae Asset Global Investments Co. Ltd. lifted its position in Kingsoft Cloud by 12.7% during the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 19,549 shares of the company’s stock worth $205,000 after buying an additional 2,200 shares during the period. 13.40% of the stock is owned by institutional investors and hedge funds.

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.