Stock Traders Buy High Volume of Call Options on VNET Group (NASDAQ:VNET)

On Wednesday, VNET Group, Inc. (NASDAQ:VNET) experienced a significant surge in options trading activity, with investors purchasing a total of 9,620 call options. This figure marks a remarkable increase of 459%, compared to the average daily volume of just 1,721 call options.

VNET Group Price Performance

During midday trading on Wednesday, VNET Group's shares gained $1.19, reaching a total price of $11.16. The trading volume registered at 7,425,602 shares, substantially higher than its average of 5,765,757 shares. The company has a debt-to-equity ratio of 1.46, with a current ratio and quick ratio of both at 0.83. VNET Group's market capitalization stands at $2.87 billion, and its P/E ratio is recorded at -5.02, alongside a PEG ratio of 0.78 and a beta of -0.18. Notably, the company has recorded a 52-week low of $1.42 and a high of $11.43, with its 50-day and 200-day simple moving averages at $5.59 and $3.98, respectively.

Institutional Investors Weigh In On VNET Group

Several hedge funds and institutional investors have recently taken positions in VNET Group. For example, JPMorgan Chase & Co. increased its ownership of VNET shares by an impressive 622.8% in the fourth quarter, now holding 989,402 shares valued at approximately $4,690,000 after acquiring an additional 852,519 shares. Similarly, American Century Companies Inc. boosted its stake by 20.4%, owning 474,929 shares worth about $2,251,000, following an additional purchase of 80,516 shares. Anson Funds Management LP also significantly increased its holdings by 84.9% during the third quarter, now owning 450,000 shares valued at $1,836,000. SG Americas Securities LLC raised its position by a whopping 534.6% in the fourth quarter, now holding 407,327 shares valued at $1,931,000 after purchasing an extra 343,140 shares. GSA Capital Partners LLP also increased holdings by 24.8% during the third quarter, possessing 369,231 shares valued at about $1,506,000. In total, 72.83% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Recent analyst reports have also focused on VNET Group. For instance, UBS Group has raised its target price for VNET from $6.40 to $7.00 while giving it a "buy" rating. Meanwhile, the Goldman Sachs Group upgraded VNET's rating from "neutral" to "buy," increasing their price target from $3.10 to $5.00. Among analysts, one has rated the stock as a hold, five assigned a buy rating, and one has given a strong buy rating. MarketBeat reports that the stock currently holds an average rating of "Buy" and has a consensus price target of $4.78.

About VNET Group

VNET Group, Inc. is an investment holding company that provides hosting and related services primarily in China. The company offers a range of managed hosting services, including colocation services that provide data center space for customers' servers. It also offers interconnectivity services, value-added services such as hybrid IT and server management, cloud services for running applications online, and VPN services to extend private networks via public internet connections.

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