GDS (NASDAQ:GDS) Shares Gap Down – Here’s Why

GDS Holdings Limited (NASDAQ:GDS) shares gapped down before the market opened on Tuesday . The stock had previously closed at $21.99, but opened at $20.00. GDS shares last traded at $20.19, with a volume of 430,599 shares changing hands.

Analysts Set New Price Targets

A number of research firms have issued reports on GDS. Royal Bank of Canada upgraded GDS from a “sector perform” rating to an “outperform” rating and boosted their price target for the company from $13.00 to $14.00 in a research note on Monday, July 8th. Nomura Securities raised shares of GDS to a “strong-buy” rating in a report on Monday, August 26th. Finally, Bank of America lifted their price target on shares of GDS from $12.40 to $22.40 and gave the company a “buy” rating in a report on Tuesday, August 27th. One investment analyst has rated the stock with a sell rating, one has given a hold rating, three have assigned a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $15.29.

GDS Stock Performance

The firm has a market capitalization of $3.95 billion, a PE ratio of -6.28 and a beta of 0.24. The company has a debt-to-equity ratio of 2.30, a current ratio of 1.39 and a quick ratio of 1.39. The business has a 50-day simple moving average of $15.93 and a 200-day simple moving average of $11.25.

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

Hedge Funds Weigh In On GDS

Hedge funds and other institutional investors have recently made changes to their positions in the company. Creative Planning raised its position in shares of GDS by 10.3% in the 2nd quarter. Creative Planning now owns 99,850 shares of the company’s stock valued at $928,000 after purchasing an additional 9,332 shares during the last quarter. Vanguard Personalized Indexing Management LLC purchased a new position in shares of GDS in the second quarter worth $108,000. Quadrature Capital Ltd acquired a new stake in shares of GDS during the fourth quarter worth $107,000. Berylson Capital Partners LLC raised its stake in GDS by 23.0% in the 4th quarter. Berylson Capital Partners LLC now owns 115,000 shares of the company’s stock worth $1,049,000 after acquiring an additional 21,500 shares during the last quarter. Finally, Marshall Wace LLP purchased a new stake in GDS during the 2nd quarter valued at about $203,000. Institutional investors own 33.71% of the company’s stock.

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.