GDS (NASDAQ:GDS) Shares Gap Up – Here’s Why

GDS Holdings Limited (NASDAQ:GDS) gapped up prior to trading on Monday . The stock had previously closed at $25.68, but opened at $27.22. GDS shares last traded at $27.39, with a volume of 525,416 shares changing hands.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on GDS. Jefferies Financial Group upgraded GDS from a “hold” rating to a “buy” rating and set a $45.00 target price on the stock in a report on Tuesday, March 18th. Wall Street Zen raised shares of GDS from a “sell” rating to a “hold” rating in a research note on Wednesday, May 21st. Daiwa Capital Markets restated a “buy” rating on shares of GDS in a research report on Wednesday, May 28th. Royal Bank of Canada downgraded GDS from an “outperform” rating to a “sector perform” rating and increased their price target for the stock from $26.00 to $37.00 in a report on Tuesday, February 25th. Finally, Citigroup restated an “outperform” rating on shares of GDS in a report on Thursday, March 20th. Two research analysts have rated the stock with a hold rating, five have given a buy rating and three have assigned a strong buy rating to the company. Based on data from MarketBeat, GDS has a consensus rating of “Buy” and an average target price of $39.48.

GDS Trading Up 7.5%

The business has a 50 day moving average of $24.75 and a two-hundred day moving average of $26.44. The firm has a market cap of $5.26 billion, a P/E ratio of -9.04 and a beta of 0.25. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 2.25.

GDS (NASDAQ:GDS) last issued its quarterly earnings data on Tuesday, May 20th. The company reported $0.48 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.22) by $0.70. GDS had a negative net margin of 35.97% and a negative return on equity of 8.22%. The firm had revenue of $375.14 million during the quarter, compared to the consensus estimate of $2.72 billion. During the same period last year, the business posted ($1.96) earnings per share. The business’s revenue for the quarter was up 3.6% compared to the same quarter last year. Analysts predict that GDS Holdings Limited will post -0.89 earnings per share for the current year.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the company. Bamco Inc. NY grew its stake in shares of GDS by 10.5% in the fourth quarter. Bamco Inc. NY now owns 6,673,226 shares of the company’s stock valued at $158,556,000 after acquiring an additional 632,671 shares in the last quarter. Aspex Management HK Ltd grew its position in shares of GDS by 23.0% during the 4th quarter. Aspex Management HK Ltd now owns 4,926,727 shares of the company’s stock worth $117,059,000 after purchasing an additional 922,709 shares in the last quarter. American Century Companies Inc. increased its holdings in shares of GDS by 509.6% during the fourth quarter. American Century Companies Inc. now owns 2,323,482 shares of the company’s stock worth $55,206,000 after purchasing an additional 1,942,341 shares during the period. Driehaus Capital Management LLC increased its holdings in shares of GDS by 195.6% during the fourth quarter. Driehaus Capital Management LLC now owns 1,845,623 shares of the company’s stock worth $43,852,000 after purchasing an additional 1,221,289 shares during the period. Finally, Triata Capital Ltd acquired a new stake in shares of GDS in the fourth quarter valued at approximately $41,472,000. Institutional investors 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.