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

GDS Holdings Limited (NASDAQ:GDS) shares gapped down before the market opened on Wednesday . The stock had previously closed at $35.58, but opened at $29.92. GDS shares last traded at $31.61, with a volume of 2,439,081 shares.

Analysts Set New Price Targets

Several equities research analysts have issued reports on the stock. JMP Securities assumed coverage on shares of GDS in a research note on Monday, January 27th. They set an “outperform” rating and a $35.00 target price on the stock. StockNews.com cut shares of GDS from a “hold” rating to a “sell” rating in a research note on Friday, February 28th. Citizens Jmp raised shares of GDS to a “strong-buy” rating in a research report on Monday, January 27th. Royal Bank of Canada cut shares of GDS from an “outperform” rating to a “sector perform” rating and boosted their price target for the company from $26.00 to $37.00 in a research report on Tuesday, February 25th. Finally, Raymond James raised shares of GDS from an “outperform” rating to a “strong-buy” rating and set a $53.00 price target on the stock in a research report on Thursday. One investment analyst has rated the stock with a sell rating, two have given a hold rating, four have assigned a buy rating and three have issued a strong buy rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $33.23.

GDS Price Performance

The stock’s 50-day simple moving average is $31.32 and its 200 day simple moving average is $24.44. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 2.25. The company has a market cap of $5.45 billion, a price-to-earnings ratio of -9.38 and a beta of 0.06.

GDS (NASDAQ:GDS) last posted its earnings results on Wednesday, March 19th. The company reported ($0.10) EPS for the quarter, beating analysts’ consensus estimates of ($0.27) by $0.17. The company had revenue of $425.13 million for the quarter, compared to analysts’ expectations of $3.11 billion. GDS had a negative net margin of 35.97% and a negative return on equity of 8.22%. GDS’s revenue for the quarter was up 9.1% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($2.16) earnings per share. On average, equities research analysts anticipate that GDS Holdings Limited will post -0.89 EPS for the current fiscal year.

Institutional Trading of GDS

Institutional investors and hedge funds have recently bought and sold shares of the business. Alberta Investment Management Corp purchased a new stake in GDS during the fourth quarter worth about $4,935,000. JPMorgan Chase & Co. increased its stake in shares of GDS by 7,553.4% during the third quarter. JPMorgan Chase & Co. now owns 610,821 shares of the company’s stock worth $12,461,000 after buying an additional 602,840 shares during the period. Y Intercept Hong Kong Ltd increased its stake in shares of GDS by 165.5% during the fourth quarter. Y Intercept Hong Kong Ltd now owns 54,127 shares of the company’s stock worth $1,286,000 after buying an additional 33,741 shares during the period. Healthcare of Ontario Pension Plan Trust Fund purchased a new stake in shares of GDS during the third quarter worth approximately $27,212,000. Finally, State of New Jersey Common Pension Fund D purchased a new stake in shares of GDS during the fourth quarter worth approximately $1,938,000. 33.71% of the stock is currently owned by hedge funds and other institutional investors.

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.