Zacks Investment Research Downgrades 21Vianet Group (VNET) to Hold

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21Vianet Group (NASDAQ:VNET) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Thursday.

According to Zacks, “21Vianet Group, Inc. operates as a carrier-neutral Internet data center services provider in China. It provides hosting and related services, managed network services and cloud computing infrastructure. The Company’s infrastructure is interconnected with the networks operated by all of China’s telecommunications carriers, major non-carriers and local Internet service providers, or ISPs. 21Vianet Group, Incorporation. Its customers include Internet companies, government entities, blue-chip enterprises, and small-to mid-sized enterprises. 21Vianet Group, Inc. is headquartered in Beijing, the Peoples’ Republic of China. “

VNET has been the subject of a number of other reports. BidaskClub upgraded 21Vianet Group from a “hold” rating to a “buy” rating in a report on Saturday, July 21st. Bank of America assumed coverage on 21Vianet Group in a report on Tuesday, September 18th. They issued a “buy” rating for the company. Finally, Jefferies Financial Group assumed coverage on 21Vianet Group in a report on Tuesday, October 2nd. They issued a “buy” rating for the company. Two research analysts have rated the stock with a hold rating and three have issued a buy rating to the stock. 21Vianet Group currently has a consensus rating of “Buy” and a consensus target price of $11.00.

NASDAQ:VNET traded down $0.39 during midday trading on Thursday, reaching $9.55. The company had a trading volume of 4,310 shares, compared to its average volume of 561,285. The firm has a market cap of $1.13 billion, a PE ratio of -39.75 and a beta of 1.94. 21Vianet Group has a 12-month low of $5.01 and a 12-month high of $11.54. The company has a current ratio of 2.38, a quick ratio of 2.38 and a debt-to-equity ratio of 0.54.

21Vianet Group (NASDAQ:VNET) last released its earnings results on Thursday, August 16th. The information technology services provider reported ($0.01) earnings per share (EPS) for the quarter, meeting the Zacks’ consensus estimate of ($0.01). The firm had revenue of $125.18 million during the quarter. 21Vianet Group had a positive return on equity of 2.05% and a negative net margin of 18.44%. Equities analysts forecast that 21Vianet Group will post 0.01 EPS for the current year.

A number of large investors have recently added to or reduced their stakes in VNET. BlackRock Inc. raised its holdings in 21Vianet Group by 7.2% during the 1st quarter. BlackRock Inc. now owns 1,360,938 shares of the information technology services provider’s stock worth $9,432,000 after purchasing an additional 91,336 shares during the last quarter. Dimensional Fund Advisors LP raised its holdings in 21Vianet Group by 5.0% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,144,823 shares of the information technology services provider’s stock worth $7,934,000 after purchasing an additional 54,160 shares during the last quarter. GSA Capital Partners LLP bought a new position in 21Vianet Group during the 1st quarter worth approximately $529,000. Guggenheim Capital LLC raised its holdings in 21Vianet Group by 13.7% during the 1st quarter. Guggenheim Capital LLC now owns 188,625 shares of the information technology services provider’s stock worth $1,307,000 after purchasing an additional 22,659 shares during the last quarter. Finally, Cubist Systematic Strategies LLC raised its holdings in 21Vianet Group by 226.4% during the 1st quarter. Cubist Systematic Strategies LLC now owns 34,586 shares of the information technology services provider’s stock worth $240,000 after purchasing an additional 23,991 shares during the last quarter. Hedge funds and other institutional investors own 30.52% of the company’s stock.

21Vianet Group Company Profile

21Vianet Group, Inc provides carrier-neutral Internet data center services to Internet companies, government entities, blue-chip enterprises, and small-to mid-sized enterprises in the People's Republic of China. It offers hosting and related services to house servers and networking equipment in its data centers, and connects them through a data transmission network; and other hosting related value-added services.

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