GDS (NASDAQ:GDS) Shares Down 6.1% – Here’s Why

GDS Holdings (NASDAQ:GDS)’s share price dropped 6.1% during mid-day trading on Wednesday . The company traded as low as $37.76 and last traded at $37.9320. Approximately 832,154 shares traded hands during mid-day trading, a decline of 60% from the average daily volume of 2,063,703 shares. The stock had previously closed at $40.41.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on GDS. Piper Sandler set a $36.00 price objective on shares of GDS in a research note on Thursday. Zacks Research lowered shares of GDS from a “strong-buy” rating to a “hold” rating in a research note on Monday. Morgan Stanley reiterated an “overweight” rating and set a $64.00 price objective on shares of GDS in a research note on Tuesday, March 17th. Wall Street Zen upgraded shares of GDS from a “sell” rating to a “hold” rating in a research note on Saturday, May 2nd. Finally, Weiss Ratings upgraded shares of GDS from a “hold (c-)” rating to a “hold (c)” rating in a research note on Monday. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $48.04.

GDS Trading Down 4.1%

The company has a current ratio of 2.60, a quick ratio of 2.60 and a debt-to-equity ratio of 1.60. The stock has a market cap of $6.84 billion, a P/E ratio of 22.40 and a beta of 0.46. The firm’s 50-day simple moving average is $42.43 and its 200 day simple moving average is $39.94.

GDS (NASDAQ:GDS) last posted its earnings results on Friday, May 15th. The company reported $1.53 EPS for the quarter, topping the consensus estimate of ($0.03) by $1.56. GDS had a net margin of 23.83% and a return on equity of 16.34%. The firm had revenue of $426.13 million during the quarter, compared to analysts’ expectations of $436.44 million. During the same quarter in the prior year, the firm earned $3.47 EPS. GDS’s quarterly revenue was up 23.7% on a year-over-year basis. As a group, equities research analysts anticipate that GDS Holdings will post 1.16 earnings per share for the current year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Assetmark Inc. grew its position in GDS by 1,123.2% in the 3rd quarter. Assetmark Inc. now owns 685 shares of the company’s stock worth $27,000 after purchasing an additional 629 shares during the last quarter. Leonteq Securities AG bought a new position in GDS in the 4th quarter worth about $34,000. Advisors Asset Management Inc. bought a new position in GDS in the 1st quarter worth about $25,000. NewEdge Advisors LLC bought a new position in GDS in the 1st quarter worth about $25,000. Finally, Hantz Financial Services Inc. grew its position in GDS by 165.0% in the 3rd quarter. Hantz Financial Services Inc. now owns 1,365 shares of the company’s stock worth $53,000 after purchasing an additional 850 shares during the last quarter. Institutional investors own 33.71% of the company’s stock.

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.