Kingsoft Cloud (NASDAQ:KC) Sees Unusually-High Trading Volume on Strong Earnings

Kingsoft Cloud Holdings Limited (NASDAQ:KC - Get Free Report) saw strong trading volume on Wednesday after the company announced better than expected quarterly earnings. 3,180,534 shares traded hands during mid-day 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) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.11) by $0.06. Kingsoft Cloud had a negative net margin of 28.41% and a negative return on equity of 19.13%. The firm had revenue of $2.23 billion during the quarter, compared to analysts' expectations of $2.11 billion. During the same period in the prior year, the company posted $0.08 EPS. The company's revenue was up 29.6% on a year-over-year basis.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on the stock. Nomura Securities cut shares of Kingsoft Cloud from a "strong-buy" rating to a "hold" rating in a research report on Monday, March 3rd. UBS Group upgraded shares of Kingsoft Cloud from a "neutral" rating to a "buy" rating and increased their price objective for the stock from $4.20 to $12.50 in a research report on Friday, December 6th. Finally, Nomura lowered shares of Kingsoft Cloud from a "buy" rating to a "neutral" rating in a research note on Monday, March 3rd. Three equities research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $6.55.

Remove Ads

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of KC. Walleye Capital LLC bought a new position in shares of Kingsoft Cloud in the third quarter valued at $119,000. Marshall Wace LLP bought a new position in shares of Kingsoft Cloud in the fourth quarter valued at $119,000. Vise Technologies Inc. bought a new position in shares of Kingsoft Cloud in the fourth quarter valued at $125,000. Cetera Investment Advisers purchased a new stake in shares of Kingsoft Cloud in the fourth quarter valued at about $138,000. Finally, Mirae Asset Global Investments Co. Ltd. raised its holdings in shares of Kingsoft Cloud by 12.7% in 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 during the last quarter. 13.40% of the stock is owned by institutional investors.

Kingsoft Cloud Stock Performance

The company's fifty day moving average price is $15.49 and its 200 day moving average price is $9.03. The company has a market cap of $3.91 billion, a PE ratio of -12.86 and a beta of 2.23. The company has a debt-to-equity ratio of 0.10, a current ratio of 0.67 and a quick ratio of 0.67.

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.