GDS (NASDAQ:GDS) Trading Down 5% – Should You Sell?

GDS Holdings (NASDAQ:GDS)’s stock price was down 5% during trading on Friday . The company traded as low as $40.93 and last traded at $41.2150. Approximately 863,117 shares were traded during trading, a decline of 70% from the average daily volume of 2,888,735 shares. The stock had previously closed at $43.40.

Analysts Set New Price Targets

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

GDS Stock Performance

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 10.11 and a beta of 0.34. The stock’s 50 day moving average is $35.21 and its 200 day moving average is $35.37.

GDS (NASDAQ:GDS) last released its earnings results on Wednesday, November 19th. The company reported $0.45 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.06) by $0.51. GDS had a return on equity of 5.17% and a net margin of 49.60%.The firm had revenue of $405.28 million for the quarter, compared to analysts’ expectations of $402.81 million. During the same quarter in the previous year, the business posted ($0.14) earnings per share. The business’s revenue for the quarter was up 10.2% on a year-over-year basis. Analysts anticipate that GDS Holdings will post -0.89 earnings per share for the current year.

Hedge Funds Weigh In On GDS

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Advisors Asset Management Inc. purchased a new stake in GDS in the 1st quarter worth approximately $25,000. NewEdge Advisors LLC bought a new position in shares of GDS in the 1st quarter worth about $25,000. Huntington National Bank increased its stake in shares of GDS by 83,700.0% during the second quarter. Huntington National Bank now owns 838 shares of the company’s stock valued at $26,000 after purchasing an additional 837 shares in the last quarter. Assetmark Inc. grew its stake in shares of GDS by 1,123.2% in the third quarter. Assetmark Inc. now owns 685 shares of the company’s stock worth $27,000 after acquiring an additional 629 shares during the last quarter. Finally, Hantz Financial Services Inc. boosted its position in shares of GDS by 165.0% during the third quarter. Hantz Financial Services Inc. now owns 1,365 shares of the company’s stock valued at $53,000 after buying an additional 850 shares during the last quarter. Hedge funds and other institutional investors own 33.71% of the company’s stock.

GDS Company Profile

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.