Kingsoft Cloud (NASDAQ:KC) Sees Strong Trading Volume After Better-Than-Expected Earnings

Kingsoft Cloud Holdings Limited (NASDAQ:KC) shares saw unusually-high trading volume on Wednesday following a stronger than expected earnings report. Approximately 3,180,534 shares traded hands during trading, an increase of 36% from the previous session’s volume of 2,342,391 shares.The stock last traded at $18.93 and had previously closed at $18.09.

The company reported ($0.05) EPS for the quarter, beating the consensus estimate of ($0.11) by $0.06. The firm had revenue of $2.23 billion for 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 was up 29.6% on a year-over-year basis. During the same period in the prior year, the company earned $0.08 EPS.

Analyst Ratings Changes

Several research analysts have recently issued reports on the company. Nomura lowered Kingsoft Cloud from a “buy” rating to a “neutral” rating in a research report on Monday, March 3rd. UBS Group upgraded Kingsoft Cloud from a “neutral” rating to a “buy” rating and raised their price target for the stock from $4.20 to $12.50 in a research note on Friday, December 6th. Finally, Nomura Securities downgraded Kingsoft Cloud from a “strong-buy” rating to a “hold” rating in a research note on Monday, March 3rd. Three analysts have rated the stock with a hold rating and four have issued a buy rating to the company’s stock. According to data from MarketBeat, Kingsoft Cloud currently has an average rating of “Moderate Buy” and a consensus price target of $5.93.

Hedge Funds Weigh In On Kingsoft Cloud

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Mirae Asset Global Investments Co. Ltd. lifted its position in Kingsoft Cloud by 12.7% during the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 19,549 shares of the company’s stock valued at $205,000 after purchasing an additional 2,200 shares in the last quarter. State Street Corp lifted its position in shares of Kingsoft Cloud by 0.5% in the third quarter. State Street Corp now owns 609,790 shares of the company’s stock valued at $1,793,000 after acquiring an additional 3,104 shares in the last quarter. Two Sigma Advisers LP increased its holdings in shares of Kingsoft Cloud by 13.8% in the fourth quarter. Two Sigma Advisers LP now owns 27,200 shares of the company’s stock worth $285,000 after purchasing an additional 3,300 shares during the last quarter. Invesco Ltd. increased its holdings in shares of Kingsoft Cloud by 8.4% in the fourth quarter. Invesco Ltd. now owns 62,855 shares of the company’s stock worth $659,000 after purchasing an additional 4,878 shares during the last quarter. Finally, Marshall Wace LLP bought a new stake in shares of Kingsoft Cloud in the fourth quarter worth about $119,000. 13.40% of the stock is currently owned by hedge funds and other institutional investors.

Kingsoft Cloud Stock Down 10.6 %

The company has a 50 day simple moving average of $15.39 and a two-hundred day simple moving average of $8.84. The company has a quick ratio of 0.67, a current ratio of 0.67 and a debt-to-equity ratio of 0.10. The company has a market capitalization of $4.18 billion, a P/E ratio of -13.73 and a beta of 2.23.

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.