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

Kingsoft Cloud Holdings Limited (NASDAQ:KC)’s stock price gapped down prior to trading 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.

Analysts Set New Price Targets

KC has been the subject of several recent analyst reports. Nomura downgraded shares of Kingsoft Cloud from a “buy” rating to a “neutral” rating in a research note on Monday, March 3rd. Nomura Securities downgraded shares of Kingsoft Cloud from a “strong-buy” rating to a “hold” rating in a research note on Monday, March 3rd. Finally, UBS Group upgraded shares of Kingsoft Cloud from a “neutral” rating to a “buy” rating and raised their price objective for the stock from $4.20 to $12.50 in a research report on Friday, December 6th. Three investment analysts have rated the stock with a hold rating and four have given a buy rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $5.93.

Kingsoft Cloud Price Performance

The business’s 50 day moving average is $15.27 and its 200-day moving average is $8.79. The firm has a market capitalization of $4.29 billion, a P/E ratio of -14.05 and a beta of 2.23. The company has a quick ratio of 0.67, a current ratio of 0.67 and a debt-to-equity ratio of 0.10.

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 analysts’ consensus estimates of ($0.11) by $0.06. The business had revenue of $2.23 billion for the quarter, compared to analysts’ expectations 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 quarterly revenue was up 29.6% compared to the same quarter last year. During the same period last year, the firm posted $0.08 earnings per share. As a group, sell-side analysts predict that Kingsoft Cloud Holdings Limited will post -0.63 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. D. E. Shaw & Co. Inc. bought a new stake in shares of Kingsoft Cloud during the fourth quarter worth $21,076,000. Voloridge Investment Management LLC bought a new stake in shares of Kingsoft Cloud during the fourth quarter worth $16,345,000. Millennium Management LLC grew its stake in shares of Kingsoft Cloud by 4,098.3% during the fourth quarter. Millennium Management LLC now owns 895,004 shares of the company’s stock worth $9,389,000 after buying an additional 873,686 shares during the last quarter. Renaissance Technologies LLC grew its stake in shares of Kingsoft Cloud by 69.8% during the fourth quarter. Renaissance Technologies LLC now owns 867,934 shares of the company’s stock worth $9,105,000 after buying an additional 356,834 shares during the last quarter. Finally, Connor Clark & Lunn Investment Management Ltd. grew its stake in shares of Kingsoft Cloud by 628.2% during the fourth quarter. Connor Clark & Lunn Investment Management Ltd. now owns 806,902 shares of the company’s stock worth $8,464,000 after buying an additional 696,094 shares during the last quarter. 13.40% of the stock is owned by institutional investors.

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.