GDS (NASDAQ:GDS) Trading Down 6.9% – What’s Next?

GDS Holdings Limited (NASDAQ:GDS)’s stock price fell 6.9% on Tuesday . The stock traded as low as $20.68 and last traded at $20.68. 843,385 shares were traded during trading, a decline of 48% from the average session volume of 1,623,115 shares. The stock had previously closed at $22.21.

Wall Street Analysts Forecast Growth

GDS has been the subject of a number of research reports. Royal Bank of Canada lifted their target price on shares of GDS from $14.00 to $26.00 and gave the stock an “outperform” rating in a research report on Monday. Bank of America increased their target price on GDS from $12.40 to $22.40 and gave the company a “buy” rating in a report on Tuesday, August 27th. Finally, Nomura Securities raised GDS to a “strong-buy” rating in a report on Monday, August 26th. One research analyst has rated the stock with a sell rating, one has given a hold rating, three have given a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $18.29.

GDS Stock Performance

The company has a debt-to-equity ratio of 2.30, a quick ratio of 1.39 and a current ratio of 1.39. The firm has a market capitalization of $4.01 billion, a PE ratio of -6.49 and a beta of 0.24. The company’s fifty day moving average price is $17.20 and its two-hundred day moving average price is $11.84.

GDS (NASDAQ:GDS) last released its quarterly earnings data on Wednesday, August 21st. The company reported ($0.18) earnings per share (EPS) for the quarter, topping 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 during the quarter, compared to the consensus estimate of $384.14 million. As a group, equities analysts expect that GDS Holdings Limited will post -1.14 earnings per share for the current year.

Institutional Trading of GDS

A number of hedge funds have recently made changes to their positions in the company. Baupost Group LLC MA purchased a new stake in shares of GDS during the first quarter worth about $17,290,000. Goldman Sachs Group Inc. increased its holdings in GDS by 16.7% during the 4th quarter. Goldman Sachs Group Inc. now owns 5,404,486 shares of the company’s stock worth $49,289,000 after purchasing an additional 773,378 shares during the last quarter. Farallon Capital Management LLC acquired a new position in shares of GDS in the 1st quarter valued at approximately $4,722,000. Wellington Management Group LLP boosted its stake in shares of GDS by 258.1% during the 4th quarter. Wellington Management Group LLP now owns 608,625 shares of the company’s stock valued at $5,551,000 after buying an additional 438,661 shares during the last quarter. Finally, Bamco Inc. NY acquired a new stake in shares of GDS during the first quarter worth approximately $2,896,000. Hedge funds and other 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.