GDS (NASDAQ:GDS) Shares Gap Down – Time to Sell?

GDS Holdings (NASDAQ:GDS) shares gapped down before the market opened on Tuesday . The stock had previously closed at $44.00, but opened at $42.46. GDS shares last traded at $42.5810, with a volume of 657,589 shares changing hands.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on the company. Raymond James Financial restated a “strong-buy” rating on shares of GDS in a research note on Tuesday. Weiss Ratings restated a “hold (c)” rating on shares of GDS in a research note on Monday, December 29th. Macquarie set a $46.70 target price on GDS in a report on Thursday, November 6th. TD Cowen dropped their target price on GDS from $38.00 to $37.00 and set a “buy” rating on the stock in a research report on Thursday, November 20th. Finally, UBS Group set a $55.00 price target on shares of GDS in a research report on Monday, December 1st. Two equities research analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $46.70.

GDS Trading Down 1.2%

The company has a current ratio of 2.51, a quick ratio of 2.51 and a debt-to-equity ratio of 1.65. The firm has a market cap of $8.37 billion, a price-to-earnings ratio of 10.88 and a beta of 0.34. The company has a fifty day moving average price of $35.21 and a 200-day moving average price of $35.37.

GDS (NASDAQ:GDS) last announced its quarterly earnings results on Wednesday, November 19th. The company reported $0.45 earnings per share for the quarter, beating the consensus estimate of ($0.06) by $0.51. GDS had a return on equity of 5.17% and a net margin of 49.60%.The company had revenue of $405.28 million during the quarter, compared to analysts’ expectations of $402.81 million. During the same period last year, the business earned ($0.14) earnings per share. GDS’s quarterly revenue was up 10.2% on a year-over-year basis. As a group, research analysts expect that GDS Holdings will post -0.89 EPS for the current year.

Institutional Trading of GDS

A number of hedge funds have recently added to or reduced their stakes in GDS. Canada Pension Plan Investment Board grew its position in GDS by 77.7% during the second quarter. Canada Pension Plan Investment Board now owns 7,004,083 shares of the company’s stock valued at $214,115,000 after buying an additional 3,062,658 shares during the period. Aspex Management HK Ltd increased its stake in shares of GDS by 46.4% in the 2nd quarter. Aspex Management HK Ltd now owns 4,406,949 shares of the company’s stock valued at $134,720,000 after purchasing an additional 1,397,073 shares in the last quarter. Carrhae Capital LLP raised its holdings in GDS by 295.4% in the 3rd quarter. Carrhae Capital LLP now owns 1,648,278 shares of the company’s stock worth $63,788,000 after purchasing an additional 1,231,375 shares during the period. Marshall Wace LLP boosted its position in GDS by 1,671.6% during the third quarter. Marshall Wace LLP now owns 1,227,203 shares of the company’s stock worth $47,493,000 after purchasing an additional 1,157,934 shares in the last quarter. Finally, Bamco Inc. NY boosted its position in GDS by 35.0% during the third quarter. Bamco Inc. NY now owns 4,258,664 shares of the company’s stock worth $164,810,000 after purchasing an additional 1,104,756 shares in the last quarter. 33.71% of the stock is owned by hedge funds and other institutional investors.

About GDS

GDS Holdings Limited, founded in 2001 and headquartered in Shanghai, is a leading network-neutral data center services provider in China. The company operates a portfolio of state-of-the-art data center facilities designed to support the mission-critical IT infrastructure of cloud service providers, internet enterprises, financial institutions, and government entities. GDS was among the first Chinese providers to offer high-density colocation solutions, catering to customers with demanding computing and storage requirements.

GDS specializes in delivering scalable colocation, cross-connect, and interconnection services within its facilities, enabling clients to establish high-speed, low-latency connections to major cloud platforms and internet exchange points.