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

GDS Holdings (NASDAQ:GDS)’s stock price gapped down prior to trading on Thursday . The stock had previously closed at $31.61, but opened at $30.49. GDS shares last traded at $30.7070, with a volume of 272,926 shares trading hands.

Analysts Set New Price Targets

A number of equities analysts have recently commented on the company. Weiss Ratings upgraded GDS from a “hold (c-)” rating to a “hold (c)” rating in a research note on Monday, May 18th. TD Cowen lowered their target price on GDS from $37.00 to $36.00 and set a “buy” rating on the stock in a report on Thursday, May 21st. Zacks Research raised GDS from a “hold” rating to a “strong-buy” rating in a report on Tuesday, June 16th. Wall Street Zen raised GDS from a “sell” rating to a “hold” rating in a research report on Saturday, May 2nd. Finally, Morgan Stanley reiterated an “overweight” rating and set a $64.00 price target on shares of GDS in a report on Tuesday, March 17th. Two analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat.com, GDS has an average rating of “Buy” and an average price target of $48.04.

GDS Stock Performance

The firm’s fifty day moving average price is $36.70 and its 200-day moving average price is $39.84. The company has a current ratio of 1.87, a quick ratio of 1.87 and a debt-to-equity ratio of 1.25. The company has a market cap of $5.98 billion, a P/E ratio of 18.99 and a beta of 0.41.

GDS (NASDAQ:GDS) last announced its quarterly earnings data on Friday, May 15th. The company reported $1.53 EPS for the quarter, beating analysts’ consensus estimates of ($0.03) by $1.56. GDS had a net margin of 23.83% and a return on equity of 15.62%. The business had revenue of $426.12 million during the quarter, compared to analyst estimates of $436.44 million. During the same quarter in the prior year, the business earned $3.47 earnings per share. The firm’s revenue for the quarter was up 23.7% on a year-over-year basis. As a group, research analysts forecast that GDS Holdings will post 5.65 EPS for the current fiscal year.

Insider Activity at GDS

In other GDS news, VP Yixin Qian sold 10,000 shares of the company’s stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $35.25, for a total value of $352,500.00. Following the completion of the transaction, the vice president owned 66,865 shares of the company’s stock, valued at $2,356,991.25. This represents a 13.01% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Judy Qing Ye sold 37,394 shares of the firm’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $36.21, for a total value of $1,354,036.74. The disclosure for this sale is available in the SEC filing. Corporate insiders own 7.99% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Leonteq Securities AG bought a new stake in GDS in the 4th quarter valued at $34,000. Advisors Asset Management Inc. acquired a new position in shares of GDS in the 1st quarter valued at $25,000. NewEdge Advisors LLC bought a new position in shares of GDS during the 1st quarter worth about $25,000. Summit Securities Group LLC bought a new position in shares of GDS during the 1st quarter worth about $65,000. Finally, Van ECK Associates Corp lifted its holdings in shares of GDS by 245.3% during the 4th quarter. Van ECK Associates Corp now owns 1,692 shares of the company’s stock worth $59,000 after acquiring an additional 1,202 shares during the period. 33.71% of the stock is 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.