Kingsoft Cloud (NASDAQ:KC) Shares Gap Down – Should You Sell?

Kingsoft Cloud Holdings Limited (NASDAQ:KC) gapped down prior to trading on Tuesday . The stock had previously closed at $2.94, but opened at $2.81. Kingsoft Cloud shares last traded at $2.79, with a volume of 459,076 shares trading hands.

Analysts Set New Price Targets

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

Kingsoft Cloud Price Performance

The stock’s 50 day moving average price is $2.63 and its two-hundred day moving average price is $2.77. 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 $697.64 million, a price-to-earnings ratio of -2.43 and a beta of 2.00.

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

Institutional Investors Weigh In On Kingsoft Cloud

Several institutional investors and hedge funds have recently bought and sold shares of KC. Mirae Asset Global Investments Co. Ltd. increased its holdings in Kingsoft Cloud by 95.1% in the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 640,486 shares of the company’s stock valued at $1,947,000 after buying an additional 312,132 shares during the period. Sei Investments Co. boosted its stake 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 purchasing an additional 35,175 shares in the last quarter. Swedbank AB acquired a new stake in shares of Kingsoft Cloud in the 1st quarter valued at $649,000. Blue Trust Inc. acquired a new stake in shares of Kingsoft Cloud in the 2nd quarter valued at $36,000. Finally, Headlands Technologies LLC boosted its stake 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 purchasing an additional 24,932 shares in the last quarter. Institutional investors own 13.40% of the company’s stock.

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.