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

GDS Holdings (NASDAQ:GDS)’s stock price gapped up prior to trading on Tuesday . The stock had previously closed at $34.69, but opened at $37.03. GDS shares last traded at $37.83, with a volume of 1,030,135 shares changing hands.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on GDS. TD Cowen lowered their target price on GDS from $37.00 to $36.00 and set a “buy” rating for the company in a research note on Thursday, May 21st. Wall Street Zen upgraded GDS from a “sell” rating to a “hold” rating in a research note on Saturday, May 2nd. Piper Sandler set a $36.00 target price on GDS in a research note on Thursday, May 21st. Zacks Research lowered GDS from a “strong-buy” rating to a “hold” rating in a research note on Monday, May 18th. Finally, Weiss Ratings upgraded GDS from a “hold (c-)” rating to a “hold (c)” rating in a research note on Monday, May 18th. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $48.04.

GDS Stock Performance

The stock has a 50-day moving average of $40.45 and a 200 day moving average of $40.19. The company has a debt-to-equity ratio of 1.25, a current ratio of 1.87 and a quick ratio of 1.87. The stock has a market capitalization of $7.10 billion, a price-to-earnings ratio of 22.43 and a beta of 0.39.

GDS (NASDAQ:GDS) last announced its quarterly earnings data on Friday, May 15th. The company reported $1.53 EPS for the quarter, topping analysts’ consensus estimates of ($0.03) by $1.56. The firm had revenue of $426.13 million during the quarter, compared to analyst estimates of $436.44 million. GDS had a return on equity of 15.62% and a net margin of 23.83%.The company’s revenue was up 23.7% on a year-over-year basis. During the same period last year, the company earned $3.47 earnings per share. On average, analysts expect that GDS Holdings will post 5.65 EPS for the current year.

Insider Activity

In other news, Director Judy Qing Ye sold 37,394 shares of the business’s stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $36.21, for a total transaction of $1,354,036.74. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 7.99% of the company’s stock.

Hedge Funds Weigh In On GDS

Institutional investors have recently modified their holdings of the stock. AI Squared Management Ltd grew its position in shares of GDS by 793.5% during the 3rd quarter. AI Squared Management Ltd now owns 98,280 shares of the company’s stock worth $3,803,000 after buying an additional 87,280 shares during the period. Hidden Lake Asset Management LP lifted its holdings in shares of GDS by 16.3% during the 3rd quarter. Hidden Lake Asset Management LP now owns 205,496 shares of the company’s stock valued at $7,953,000 after purchasing an additional 28,806 shares in the last quarter. Aberdeen Group plc lifted its holdings in shares of GDS by 27.5% during the 4th quarter. Aberdeen Group plc now owns 576,498 shares of the company’s stock valued at $20,120,000 after purchasing an additional 124,473 shares in the last quarter. Pictet Asset Management Holding SA bought a new position in shares of GDS during the 4th quarter valued at about $4,983,000. Finally, ABC Arbitrage SA bought a new stake in GDS in the 3rd quarter valued at approximately $514,000. 33.71% of the stock is currently owned by institutional investors and hedge funds.

About GDS

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.