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

Kingsoft Cloud Holdings Limited (NASDAQ:KC) saw an uptick in trading volume on Wednesday following a stronger than expected earnings report. 3,180,534 shares were traded 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. The business had revenue of $2.23 billion during the quarter, compared to analysts’ expectations of $2.11 billion. Kingsoft Cloud had a negative net margin of 28.41% and a negative return on equity of 19.13%. The business’s revenue was up 29.6% on a year-over-year basis. During the same period last year, the firm posted $0.08 earnings per share.

Analysts Set New Price Targets

Several research firms have recently issued reports on KC. Nomura cut shares of Kingsoft Cloud from a “buy” rating to a “neutral” rating in a report on Monday, March 3rd. Nomura Securities cut shares of Kingsoft Cloud from a “strong-buy” rating to a “hold” rating in a report on Monday, March 3rd. Finally, UBS Group upgraded shares of Kingsoft Cloud from a “neutral” rating to a “buy” rating and increased their price objective for the company from $4.20 to $12.50 in a report on Friday, December 6th. Three equities research analysts have rated the stock with a hold rating and four have given a buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $5.93.

Institutional Trading of Kingsoft Cloud

A number of large investors have recently added to or reduced their stakes in KC. Mirae Asset Global Investments Co. Ltd. boosted its stake in Kingsoft Cloud by 12.7% in the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 19,549 shares of the company’s stock worth $205,000 after purchasing an additional 2,200 shares during the period. State Street Corp boosted its stake in Kingsoft Cloud by 0.5% in the 3rd quarter. State Street Corp now owns 609,790 shares of the company’s stock worth $1,793,000 after purchasing an additional 3,104 shares during the period. Two Sigma Advisers LP boosted its stake in Kingsoft Cloud by 13.8% in the 4th 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 period. Invesco Ltd. boosted its stake in Kingsoft Cloud by 8.4% in the 4th 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 period. Finally, Marshall Wace LLP acquired a new position in Kingsoft Cloud in the 4th quarter worth approximately $119,000. 13.40% of the stock is currently owned by institutional investors.

Kingsoft Cloud Stock Up 1.9 %

The company has a debt-to-equity ratio of 0.10, a quick ratio of 0.67 and a current ratio of 0.67. The stock has a market cap of $4.68 billion, a price-to-earnings ratio of -15.37 and a beta of 2.23. The business’s 50 day moving average is $15.27 and its 200 day moving average is $8.79.

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.