GDS (NASDAQ:GDS) Shares Gap Down – What’s Next?

Shares of GDS Holdings Limited (NASDAQ:GDS) gapped down before the market opened on Tuesday . The stock had previously closed at $23.49, but opened at $21.45. GDS shares last traded at $20.39, with a volume of 578,109 shares trading hands.

Wall Street Analyst Weigh In

GDS has been the subject of several recent research reports. Bank of America upped their price objective on GDS from $12.40 to $22.40 and gave the company a “buy” rating in a research note on Tuesday, August 27th. Nomura Securities raised shares of GDS to a “strong-buy” rating in a report on Monday, August 26th. Finally, Royal Bank of Canada raised their price target on shares of GDS from $14.00 to $26.00 and gave the company an “outperform” rating in a research note on Monday, October 14th. One research analyst has rated the stock with a sell rating, one has assigned a hold rating, three have assigned a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, GDS currently has an average rating of “Moderate Buy” and an average price target of $18.29.

GDS Price Performance

The firm has a market cap of $3.54 billion, a price-to-earnings ratio of -5.79 and a beta of 0.23. The company has a current ratio of 1.39, a quick ratio of 1.39 and a debt-to-equity ratio of 2.30. The business’s 50-day simple moving average is $21.00 and its two-hundred day simple moving average is $14.57.

GDS (NASDAQ:GDS) last posted its quarterly earnings data on Wednesday, August 21st. The company reported ($0.18) earnings per share for the quarter, topping the consensus estimate of ($0.25) by $0.07. The company had revenue of $388.92 million during the quarter, compared to analysts’ expectations of $384.14 million. GDS had a negative net margin of 39.96% and a negative return on equity of 9.10%. As a group, research analysts expect that GDS Holdings Limited will post -1.14 EPS for the current fiscal year.

Institutional Trading of GDS

A number of large investors have recently bought and sold shares of the business. Swedbank AB acquired a new position in GDS in the first quarter valued at approximately $2,174,000. Farallon Capital Management LLC lifted its position in shares of GDS by 72.7% during the 2nd quarter. Farallon Capital Management LLC now owns 1,226,133 shares of the company’s stock valued at $11,391,000 after acquiring an additional 516,133 shares during the period. Baupost Group LLC MA boosted its stake in GDS by 63.5% during the second quarter. Baupost Group LLC MA now owns 4,249,952 shares of the company’s stock worth $39,482,000 after acquiring an additional 1,649,952 shares in the last quarter. Pacer Advisors Inc. grew its holdings in GDS by 17.3% in the second quarter. Pacer Advisors Inc. now owns 849,568 shares of the company’s stock worth $7,892,000 after purchasing an additional 125,395 shares during the period. Finally, abrdn plc increased its stake in GDS by 11.3% in the third quarter. abrdn plc now owns 265,500 shares of the company’s stock valued at $5,416,000 after purchasing an additional 26,900 shares in the last quarter. 33.71% of the stock is currently owned by institutional investors and hedge funds.

GDS Company Profile

GDS Holdings Limited, together with its subsidiaries, develops and operates data centers in the People's Republic of China. The company provides colocation services comprising critical facilities space, customer-available power, racks, and cooling; managed hosting services, including business continuity and disaster recovery, network management, data storage, system security, operating system, database, and server middleware services; managed cloud services; and consulting services.