21Vianet Group Inc. (NASDAQ: VNET): Hunting Genuine Value In Market Debris


Morgan Stanley & Co. LLC recently announced the acquisition of new stake in 21Vianet Group Inc. (NASDAQ:VNET). The institutional investor has increased its shareholding in the Technology company by 8.04% to 6.55 million shares with purchase of 0.49 million shares. This fresh investment now brings its stake to 7.66% valued currently at $142.49 million. In addition, Light Street Capital Management L.. raised its holdings by 1.99 million to 1.99 million shares. And Norges Bank Investment Management has lifted its position by 30.22% or 0.38 million shares – to 1.64 million shares.

With over 1.94 million 21Vianet Group Inc. (VNET) shares trading Friday and a closing price of $23.75 on the day, the dollar volume was approximately $45.99 million. The shares have shown a positive weekly performance of 7.08% and its price on 08/28/20 gained nearly 2.15%. Currently, there are 108.59M common shares owned by the public and among those 99.72M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 8 analysts who have offered their price forecasts for VNET have a consensus price objective of $227.26. The analysts have set the share’s price value over the next 12 months at a high of $288.11 and a low of $196.42 should the stock experience a downside. Incidentally, analysts’ outlook for the 21Vianet Group Inc. stock is 1.70 for the next 12 months. The average price target is 27.61% above its last price level and an upside to the estimated low will see the stock gain 87.91% over that period. But an upside of 91.76% will see the stock hit the forecast high price target while mean target price for the stock is $222.84.

The top 3 mutual fund holders in 21Vianet Group Inc. are Fidelity China Special Situations, Government Pension Fund – Global, and Schroder Global Cities Real Estat. Fidelity China Special Situations owns 4.42 million shares of the company’s stock, all valued at over $96.0 million. Government Pension Fund – Global bought 0.38 million shares to see its total holdings expand to 1.64 million shares valued at over $35.62 million and representing 1.91% of the shares outstanding. Schroder Global Cities Real Estat bought 46950.0 shares to bring its total holdings to over 1.42 million shares at a value of $30.86 million. Schroder Global Cities Real Estat now owns shares totaling to 1.66% of the shares outstanding.

Shares of 21Vianet Group Inc. (NASDAQ: VNET) opened at $23.95, up $0.7 from a prior closing price of $23.25. However, the script later closed the day at $23.75, up 2.15%. The company’s stock has a 5-day price change of 7.08% and 58.76% over the past three months. VNET shares are trading 227.59% year to date (YTD), with the 12-month market performance up to 224.90% higher. It has a 12-month low price of $6.31 and touched a high of $30.44 over the same period. Currently, 1.94 million shares have been traded, compared to an average intraday trading volume of 1.87 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 0.84%, -0.14%, and 57.77% respectively.

Institutional ownership of 21Vianet Group Inc. (NASDAQ: VNET) shares accounts for 66.80% of the company’s 108.59M shares outstanding. Mutual fund holders own 25.11%, while other institutional holders and individual stakeholders account for 33.92% and — respectively.

It has a market capitalization of $3.03B and a beta (3y monthly) value of 0.25. The earnings-per-share (ttm) stands at -$3.13. The company has a debt-to-equity ratio at 2.53. Price movements for the stock have been influenced by the stock’s volatility, which stands at 8.74% over the week and 7.72% over the month.

Analysts forecast that 21Vianet Group Inc. (VNET) will achieve an EPS of -$0.05 for the current quarter, $0 for the next quarter and -$0.02 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.06 while analysts give the company a high EPS estimate of -$0.03. Comparatively, EPS for the current quarter was -$0.07 a year ago. Earnings per share for the fiscal year are expected to increase by 10.30%, and 98.40% over the next financial year. EPS should shrink at an annualized rate of 20.00% over the next five years, compared to 20.70% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 8 brokerage firm advisors rate 21Vianet Group Inc. (VNET) as a “Strong Buy” at a consensus score of 1.70. Specifically, 7 Wall Street analysts polled rate the stock as a buy, while 0 of the 8 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the VNET, a number of firms have released research notes about the stock. UBS stated their Buy rating for the stock in a research note on July 14, 2020, with the firm’s price target at $32. Credit Suisse coverage for the 21Vianet Group Inc. (VNET) stock in a research note released on June 09, 2020 offered a Outperform rating with a price target of $20. Goldman was of a view on April 21, 2020 that the stock is Buy, while Jefferies gave the stock Buy rating on October 03, 2018, issuing a price target of $14.20. Morgan Stanley on their part issued Overweight rating on October 04, 2017.


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