GDS (NASDAQ:GDS) Stock Falls 8.9% – Should You Sell?

Shares of GDS Holdings (NASDAQ:GDS) fell 8.9% during trading on Wednesday. The stock traded as low as $27.47 and last traded at $26.9510. Approximately 420,699 shares traded hands during mid-day trading, a decline of 80% from the average daily volume of 2,071,590 shares. The stock had previously closed at $29.60.

Analyst Ratings Changes

Several research firms have commented on GDS. Weiss Ratings reissued a “hold (c)” rating on shares of GDS in a report on Thursday, August 13th. Wall Street Zen lowered GDS from a “hold” rating to a “sell” rating in a research report on Saturday, October 10th. Zacks Research cut GDS from a “strong-buy” rating to a “hold” rating in a report on Friday, July 24th. Finally, Raymond James Financial reiterated a “strong-buy” rating and issued a $51.00 target price on shares of GDS in a research report on Tuesday, September 1st. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $48.12.

GDS Stock Performance

The business’s fifty day moving average is $31.65 and its two-hundred day moving average is $34.77. The company has a quick ratio of 1.78, a current ratio of 1.78 and a debt-to-equity ratio of 1.22. The stock has a market capitalization of $5.07 billion, a PE ratio of 8.45 and a beta of 0.42.

GDS (NASDAQ:GDS) last announced its quarterly earnings results on Tuesday, June 30th. The company reported $0.52 earnings per share for the quarter. The company had revenue of $454.51 million for the quarter. GDS had a net margin of 30.70% and a return on equity of 17.94%. As a group, research analysts anticipate that GDS Holdings will post 2.23 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in GDS. Summit Securities Group LLC bought a new stake in GDS during the first quarter worth approximately $65,000. Nykredit A S purchased a new position in shares of GDS in the 2nd quarter worth approximately $63,000. EverSource Wealth Advisors LLC increased its position in shares of GDS by 73.5% during the 1st quarter. EverSource Wealth Advisors LLC now owns 2,160 shares of the company’s stock valued at $87,000 after purchasing an additional 915 shares during the last quarter. SG Americas Securities LLC bought a new position in shares of GDS during the 1st quarter valued at approximately $132,000. Finally, PNC Financial Services Group Inc. raised its holdings in GDS by 8.4% during the 1st quarter. PNC Financial Services Group Inc. now owns 3,904 shares of the company’s stock valued at $157,000 after buying an additional 303 shares during the period. Institutional investors own 33.71% of the company’s stock.

GDS Company Profile

GDS Holdings Limited (NASDAQ: GDS) is a developer and operator of data centers. The company provides data center infrastructure and related services to cloud service providers, internet companies, financial institutions, telecommunications carriers and multinational corporations.

Its services include wholesale and retail colocation, managed data center services, interconnection and cloud connectivity. GDS designs, builds and operates facilities intended to support customers’ critical information technology infrastructure, including cloud computing, data storage and other high-performance computing requirements.

Founded in 2001, GDS has historically focused on serving customers in China through data centers in major economic and technology centers.