Kingsoft Cloud (NASDAQ:KC) Shares Down 5% – Here’s Why

Kingsoft Cloud Holdings Limited (NASDAQ:KC) shares dropped 5% during trading on Thursday . The company traded as low as $14.50 and last traded at $14.76. Approximately 1,099,560 shares changed hands during trading, a decline of 54% from the average daily volume of 2,392,874 shares. The stock had previously closed at $15.53.

Analysts Set New Price Targets

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

Kingsoft Cloud Price Performance

The company has a current ratio of 0.67, a quick ratio of 0.67 and a debt-to-equity ratio of 0.10. The company’s 50-day moving average price is $16.05 and its two-hundred day moving average price is $9.39. The company has a market cap of $3.54 billion, a P/E ratio of -11.64 and a beta of 2.23.

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

Hedge Funds Weigh In On Kingsoft Cloud

A number of large investors have recently bought and sold shares of the business. Marshall Wace LLP bought a new stake in Kingsoft Cloud in the 4th quarter valued at about $119,000. Vise Technologies Inc. bought a new stake in shares of Kingsoft Cloud during the fourth quarter valued at approximately $125,000. Cetera Investment Advisers acquired a new position in shares of Kingsoft Cloud during the fourth quarter worth approximately $138,000. Mirae Asset Global Investments Co. Ltd. grew its holdings in Kingsoft Cloud by 12.7% in the 4th 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 in the last quarter. Finally, Quantbot Technologies LP acquired a new stake in Kingsoft Cloud in the 4th quarter valued at approximately $226,000. Institutional investors own 13.40% of the company’s stock.

About Kingsoft Cloud

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.