GDS (NASDAQ:GDS) Shares Down 6.7% – What’s Next?

GDS Holdings Limited (NASDAQ:GDS)’s stock price was down 6.7% during trading on Wednesday . The stock traded as low as $17.67 and last traded at $18.37. Approximately 953,342 shares traded hands during trading, a decline of 40% from the average daily volume of 1,596,700 shares. The stock had previously closed at $19.68.

Wall Street Analyst Weigh In

Several equities research analysts have commented on GDS shares. Royal Bank of Canada boosted their price objective on GDS from $14.00 to $26.00 and gave the stock an “outperform” rating in a research note on Monday, October 14th. Nomura Securities upgraded GDS to a “strong-buy” rating in a report on Monday, August 26th. Finally, Bank of America boosted their price objective on GDS from $12.40 to $22.40 and gave the company a “buy” rating in a report on Tuesday, August 27th. One equities research analyst has rated the stock with a sell rating, one has given a hold rating, three have issued a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, GDS has an average rating of “Moderate Buy” and a consensus target price of $18.29.

GDS Price Performance

The company has a market capitalization of $3.53 billion, a PE ratio of -5.72 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 stock has a fifty day simple moving average of $20.96 and a 200-day simple moving average of $14.54.

GDS (NASDAQ:GDS) last announced its quarterly earnings results on Wednesday, August 21st. The company reported ($0.18) EPS 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 company had revenue of $388.92 million for the quarter, compared to analyst estimates of $384.14 million. Equities analysts anticipate that GDS Holdings Limited will post -1.14 earnings per share for the current year.

Institutional Investors Weigh In On GDS

Several hedge funds have recently made changes to their positions in the business. Swedbank AB acquired a new stake in GDS during the 1st quarter worth approximately $2,174,000. Farallon Capital Management LLC grew its position in GDS by 72.7% in the 2nd quarter. Farallon Capital Management LLC now owns 1,226,133 shares of the company’s stock valued at $11,391,000 after buying an additional 516,133 shares during the last quarter. Baupost Group LLC MA increased its stake in GDS by 63.5% in the 2nd quarter. Baupost Group LLC MA now owns 4,249,952 shares of the company’s stock valued at $39,482,000 after buying an additional 1,649,952 shares during the period. Pacer Advisors Inc. raised its position in GDS by 17.3% during the 2nd quarter. Pacer Advisors Inc. now owns 849,568 shares of the company’s stock worth $7,892,000 after buying an additional 125,395 shares during the last quarter. Finally, abrdn plc lifted its stake in shares of GDS by 11.3% in the 3rd quarter. abrdn plc now owns 265,500 shares of the company’s stock worth $5,416,000 after acquiring an additional 26,900 shares during the period. Institutional investors and hedge funds 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.