VNET Group Inc. (NASDAQ: VNET)’s stock price has decreased by -0.50 compared to its previous closing price of 3.02. However, the company has seen a -2.44% decrease in its stock price over the last five trading sessions. Seeking Alpha reported 2023-06-12 that Bain Capital’s takeover offer for VNET Group’s peer Chindata lends support to the argument that worldwide and Chinese data center markets have significant growth potential. However, the implied EV/EBITDA valuation multiple relating to Bain Capital’s offer price isn’t that appealing, and this limits the valuation expansion potential for other listed data center companies like VNET Group. I am lowering my rating for VNET Group stock to a hold, in view of the mixed signals emerging from the proposed buyout offer for its peer.
Is It Worth Investing in VNET Group Inc. (NASDAQ: VNET) Right Now?
Additionally, the 36-month beta value for VNET is -0.20. There are mixed opinions on the stock, with 3 analysts rating it as a “buy,” 1 rating it as “overweight,” 3 rating it as “hold,” and 0 rating it as “sell.”
The average price predicted by analysts for VNET is $35.08, which is $1.63 above the current price. The public float for VNET is 124.27M and currently, short sellers hold a 4.76% ratio of that float. The average trading volume of VNET on September 19, 2023 was 1.33M shares.
VNET’s Market Performance
VNET stock saw a decrease of -2.44% in the past week, with a monthly decline of -3.69% and a quarterly a decrease of -2.75%. The volatility ratio for the week is 4.02%, and the volatility levels for the last 30 days are 7.09% for VNET Group Inc. (VNET). The simple moving average for the last 20 days is -7.75% for VNET stock, with a simple moving average of -21.76% for the last 200 days.
Analysts’ Opinion of VNET
Many brokerage firms have already submitted their reports for VNET stocks, with BofA Securities repeating the rating for VNET by listing it as a “Neutral.” The predicted price for VNET in the upcoming period, according to BofA Securities is $3.40 based on the research report published on July 07, 2023 of the current year 2023.
VNET Trading at 0.06% from the 50-Day Moving Average
After a stumble in the market that brought VNET to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -56.00% of loss for the given period.
Volatility was left at 7.09%, however, over the last 30 days, the volatility rate increased by 4.02%, as shares sank -4.78% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +7.17% upper at present.
During the last 5 trading sessions, VNET fell by -2.92%, which changed the moving average for the period of 200-days by -40.32% in comparison to the 20-day moving average, which settled at $3.25. In addition, VNET Group Inc. saw -47.00% in overturn over a single year, with a tendency to cut further losses.
Stock Fundamentals for VNET
Current profitability levels for the company are sitting at:
- +0.87 for the present operating margin
- +18.15 for the gross margin
The net margin for VNET Group Inc. stands at -10.98. The total capital return value is set at 0.30, while invested capital returns managed to touch -4.20. Equity return is now at value -9.70, with -2.30 for asset returns.
Based on VNET Group Inc. (VNET), the company’s capital structure generated 223.38 points at debt to equity in total, while total debt to capital is 69.08. Total debt to assets is 54.79, with long-term debt to equity ratio resting at 194.60. Finally, the long-term debt to capital ratio is 60.18.
When we switch over and look at the enterprise to sales, we see a ratio of 2.02, with the company’s debt to enterprise value settled at 0.82. The receivables turnover for the company is 2.56 and the total asset turnover is 0.28. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.11.
In conclusion, VNET Group Inc. (VNET) has seen bad performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high..