GDS (NASDAQ:GDS) Shares Gap Up – Should You Buy?

GDS Holdings Limited (NASDAQ:GDS) gapped up before the market opened on Friday . The stock had previously closed at $36.02, but opened at $41.83. GDS shares last traded at $39.02, with a volume of 2,226,717 shares trading hands.

Analysts Set New Price Targets

Several analysts have commented on the stock. Citizens Jmp upgraded shares of GDS to a “strong-buy” rating in a research note on Monday, January 27th. Royal Bank of Canada reaffirmed an “outperform” rating and set a $26.00 target price on shares of GDS in a research note on Wednesday, January 29th. JMP Securities started coverage on shares of GDS in a research note on Monday, January 27th. They issued an “outperform” rating and a $35.00 price objective for the company. Daiwa Capital Markets upgraded shares of GDS from a “neutral” rating to a “buy” rating in a research note on Tuesday. Finally, StockNews.com raised shares of GDS from a “sell” rating to a “hold” rating in a report on Tuesday, January 28th. Two investment analysts have rated the stock with a hold rating, four have given a buy rating and two have given a strong buy rating to the company’s stock. According to data from MarketBeat.com, GDS has a consensus rating of “Buy” and a consensus price target of $22.60.

GDS Stock Up 6.9 %

The firm’s 50 day moving average is $23.57 and its two-hundred day moving average is $20.17. The stock has a market cap of $7.33 billion, a price-to-earnings ratio of -12.63 and a beta of 0.12. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 2.25.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Bamco Inc. NY increased its stake in shares of GDS by 128.6% during the 3rd quarter. Bamco Inc. NY now owns 6,040,555 shares of the company’s stock valued at $123,227,000 after acquiring an additional 3,397,592 shares during the last quarter. Sachem Head Capital Management LP increased its stake in shares of GDS by 161.6% during the 3rd quarter. Sachem Head Capital Management LP now owns 2,825,000 shares of the company’s stock valued at $57,630,000 after acquiring an additional 1,745,000 shares during the last quarter. American Century Companies Inc. increased its stake in shares of GDS by 509.6% during the 4th quarter. American Century Companies Inc. now owns 2,323,482 shares of the company’s stock valued at $55,206,000 after acquiring an additional 1,942,341 shares during the last quarter. Healthcare of Ontario Pension Plan Trust Fund acquired a new position in shares of GDS during the 3rd quarter valued at about $27,212,000. Finally, Portolan Capital Management LLC acquired a new position in shares of GDS during the 3rd quarter valued at about $26,572,000. Institutional investors and hedge funds own 33.71% of the company’s stock.

About GDS

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.