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

Kingsoft Cloud Holdings Limited (NASDAQ:KC) saw unusually-high trading volume on Wednesday following a stronger than expected earnings report. Approximately 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 analysts’ consensus estimates 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 return on equity of 19.13% and a negative net margin of 28.41%. The firm’s revenue for the quarter was up 29.6% compared to the same quarter last year. During the same period in the previous year, the business posted $0.08 earnings per share.

Wall Street Analyst Weigh In

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

Institutional Trading of Kingsoft Cloud

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. D. E. Shaw & Co. Inc. bought a new stake in shares of Kingsoft Cloud during the 4th quarter valued at $21,076,000. Voloridge Investment Management LLC bought a new position in Kingsoft Cloud in the 4th quarter worth about $16,345,000. Millennium Management LLC increased its stake in Kingsoft Cloud by 4,098.3% in the 4th quarter. Millennium Management LLC now owns 895,004 shares of the company’s stock worth $9,389,000 after acquiring an additional 873,686 shares during the last quarter. Renaissance Technologies LLC increased its stake in Kingsoft Cloud by 69.8% in the 4th quarter. Renaissance Technologies LLC now owns 867,934 shares of the company’s stock worth $9,105,000 after acquiring an additional 356,834 shares during the last quarter. Finally, Connor Clark & Lunn Investment Management Ltd. increased its stake in Kingsoft Cloud by 628.2% in the 4th quarter. Connor Clark & Lunn Investment Management Ltd. now owns 806,902 shares of the company’s stock worth $8,464,000 after acquiring an additional 696,094 shares during the last quarter. 13.40% of the stock is currently owned by institutional investors.

Kingsoft Cloud Price Performance

The firm has a market capitalization of $4.18 billion, a P/E ratio of -13.73 and a beta of 2.23. 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 business has a 50 day simple moving average of $15.39 and a two-hundred day simple moving average of $8.84.

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.