Kingsoft Cloud (NASDAQ:KC) Shares Gap Down – Time to Sell?

Kingsoft Cloud Holdings Limited (NASDAQ:KC) gapped down before the market opened on Wednesday . The stock had previously closed at $3.54, but opened at $3.39. Kingsoft Cloud shares last traded at $3.42, with a volume of 760,807 shares traded.

Wall Street Analysts Forecast Growth

Separately, Bank of America reduced their target price on shares of Kingsoft Cloud from $3.80 to $3.20 and set a “neutral” rating on the stock in a research note on Wednesday, August 21st. One equities research analyst has rated the stock with a hold rating and four have given a buy rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $4.10.

Kingsoft Cloud Stock Performance

The firm has a 50-day moving average price of $2.56 and a two-hundred day moving average price of $2.76. The company has a debt-to-equity ratio of 0.03, a current ratio of 0.84 and a quick ratio of 0.84. The firm has a market capitalization of $880.29 million, a P/E ratio of -3.13 and a beta of 2.00.

Kingsoft Cloud (NASDAQ:KC) last issued its earnings results on Tuesday, August 20th. The company reported ($0.20) EPS for the quarter, missing analysts’ consensus estimates of ($0.16) by ($0.04). The company had revenue of $260.32 million during the quarter, compared to the consensus estimate of $251.17 million. Kingsoft Cloud had a negative return on equity of 24.99% and a negative net margin of 25.33%. On average, analysts forecast that Kingsoft Cloud Holdings Limited will post -0.69 EPS for the current fiscal year.

Hedge Funds Weigh In On Kingsoft Cloud

A number of hedge funds and other institutional investors have recently made changes to their positions in KC. Mirae Asset Global Investments Co. Ltd. grew its holdings in Kingsoft Cloud by 95.1% during the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 640,486 shares of the company’s stock worth $1,947,000 after acquiring an additional 312,132 shares in the last quarter. Swedbank AB purchased a new stake in shares of Kingsoft Cloud during the first quarter valued at about $649,000. Sei Investments Co. boosted its holdings in shares of Kingsoft Cloud by 33.6% in the 1st quarter. Sei Investments Co. now owns 139,988 shares of the company’s stock valued at $426,000 after buying an additional 35,175 shares in the last quarter. Headlands Technologies LLC boosted its holdings in shares of Kingsoft Cloud by 313.9% in the 2nd quarter. Headlands Technologies LLC now owns 32,875 shares of the company’s stock valued at $83,000 after buying an additional 24,932 shares in the last quarter. Finally, Renaissance Technologies LLC raised its stake in shares of Kingsoft Cloud by 4.0% during the 2nd quarter. Renaissance Technologies LLC now owns 460,400 shares of the company’s stock worth $1,156,000 after acquiring an additional 17,700 shares in the last quarter. 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.