GDS (NASDAQ:GDS) Stock Price Down 5% – What’s Next?

GDS Holdings (NASDAQ:GDS) shares traded down 5% during trading on Friday . The stock traded as low as $40.93 and last traded at $41.2150. 863,117 shares changed hands during mid-day trading, a decline of 70% from the average session volume of 2,888,735 shares. The stock had previously closed at $43.40.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on GDS. TD Cowen reduced their target price on GDS from $38.00 to $37.00 and set a “buy” rating on the stock in a research report on Thursday, November 20th. UBS Group set a $55.00 price objective on shares of GDS in a report on Monday, December 1st. Raymond James Financial reissued a “strong-buy” rating on shares of GDS in a report on Tuesday. Macquarie set a $46.70 price target on shares of GDS in a report on Thursday, November 6th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of GDS in a report on Monday, December 29th. Two research analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, GDS presently has an average rating of “Moderate Buy” and an average price target of $46.70.

GDS Trading Down 6.9%

The firm has a market cap of $8.37 billion, a price-to-earnings ratio of 10.11 and a beta of 0.34. The company’s 50 day simple moving average is $35.21 and its 200 day simple moving average is $35.37. The company has a debt-to-equity ratio of 1.65, a current ratio of 2.51 and a quick ratio of 2.51.

GDS (NASDAQ:GDS) last announced its earnings results on Wednesday, November 19th. The company reported $0.45 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.06) by $0.51. GDS had a net margin of 49.60% and a return on equity of 5.17%. The business had revenue of $405.28 million for the quarter, compared to analyst estimates of $402.81 million. During the same period last year, the firm posted ($0.14) earnings per share. The company’s revenue for the quarter was up 10.2% compared to the same quarter last year. As a group, research analysts expect that GDS Holdings will post -0.89 earnings per share for the current fiscal year.

Hedge Funds Weigh In On GDS

Several hedge funds have recently bought and sold shares of GDS. Wealth Enhancement Advisory Services LLC bought a new stake in shares of GDS during the 2nd quarter valued at $306,000. Light Street Capital Management LLC bought a new stake in GDS during the second quarter worth about $21,845,000. Taikang Asset Management Hong Kong Co Ltd acquired a new position in shares of GDS in the second quarter worth approximately $1,681,000. Aberdeen Group plc lifted its position in GDS by 37.7% in the 2nd quarter. Aberdeen Group plc now owns 537,175 shares of the company’s stock valued at $16,413,000 after acquiring an additional 147,028 shares in the last quarter. Finally, Aspex Management HK Ltd grew its position in shares of GDS by 46.4% in the second quarter. Aspex Management HK Ltd now owns 4,406,949 shares of the company’s stock valued at $134,720,000 after purchasing an additional 1,397,073 shares in the last quarter. 33.71% of the stock is owned by hedge funds and other institutional investors.

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.