Kingsoft Cloud (NASDAQ:KC) Shares Gap Up – Should You Buy?

Kingsoft Cloud Holdings Limited (NASDAQ:KC)’s share price gapped up before the market opened on Monday . The stock had previously closed at $15.43, but opened at $16.30. Kingsoft Cloud shares last traded at $16.33, with a volume of 1,270,507 shares changing hands.

Wall Street Analyst Weigh In

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

Kingsoft Cloud Price Performance

The stock has a market capitalization of $3.98 billion, a PE ratio of -13.08 and a beta of 2.23. 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 firm’s 50-day moving average price is $15.75 and its 200-day moving average price is $9.22.

Kingsoft Cloud (NASDAQ:KC) last posted 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 business had revenue of $2.23 billion during the quarter, compared to analyst estimates of $2.11 billion. Kingsoft Cloud had a negative return on equity of 19.13% and a negative net margin of 28.41%. The company’s revenue for the quarter was up 29.6% on a year-over-year basis. During the same period last year, the company earned $0.08 EPS. On average, equities analysts forecast that Kingsoft Cloud Holdings Limited will post -0.63 EPS for the current fiscal year.

Hedge Funds Weigh In On Kingsoft Cloud

A number of large investors have recently made changes to their positions in the company. Mirae Asset Global Investments Co. Ltd. boosted its holdings in Kingsoft Cloud by 12.7% during the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 19,549 shares of the company’s stock valued at $205,000 after acquiring an additional 2,200 shares during the period. Jane Street Group LLC lifted its position in shares of Kingsoft Cloud by 383.5% during the third quarter. Jane Street Group LLC now owns 322,503 shares of the company’s stock worth $948,000 after purchasing an additional 255,795 shares during the last quarter. Yeomans Consulting Group Inc. bought a new position in shares of Kingsoft Cloud in the fourth quarter worth about $318,000. Connor Clark & Lunn Investment Management Ltd. purchased a new position in Kingsoft Cloud in the 3rd quarter worth about $326,000. Finally, State Street Corp lifted its holdings in Kingsoft Cloud by 0.5% during the 3rd quarter. State Street Corp now owns 609,790 shares of the company’s stock valued at $1,793,000 after buying an additional 3,104 shares in the last quarter. 13.40% of the stock is owned by hedge funds and other institutional investors.

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.