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

GDS Holdings (NASDAQ:GDS) 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.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on GDS shares. UBS Group set a $55.00 price target on 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 target price on shares of GDS in a report on Thursday, November 6th. TD Cowen reduced their price target on shares of GDS from $38.00 to $37.00 and set a “buy” rating on the stock in a research note on Thursday, November 20th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of GDS in a research report on Monday, December 29th. Two 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’s stock. According to data from MarketBeat.com, GDS presently has an average rating of “Moderate Buy” and an average price target of $46.70.

GDS Trading Down 3.3%

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’s 50-day moving average is $34.64 and its 200 day moving average is $35.16. The firm has a market capitalization of $7.81 billion, a price-to-earnings ratio of 10.66 and a beta of 0.34.

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

Hedge Funds Weigh In On GDS

Hedge funds have recently made changes to their positions in the stock. Wealth Enhancement Advisory Services LLC bought a new position in shares of GDS during the 2nd quarter worth approximately $306,000. Light Street Capital Management LLC acquired a new position in shares of GDS during the 2nd quarter valued at $21,845,000. Taikang Asset Management Hong Kong Co Ltd bought a new position in GDS during the second quarter worth $1,681,000. Aberdeen Group plc grew its holdings in GDS by 37.7% in the second quarter. Aberdeen Group plc now owns 537,175 shares of the company’s stock worth $16,413,000 after purchasing an additional 147,028 shares during the period. Finally, Aspex Management HK Ltd increased its stake in GDS by 46.4% in the second 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. 33.71% of the stock is currently owned by institutional investors.

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.