GDS (NASDAQ:GDS) Shares Gap Down – What’s Next?

GDS Holdings (NASDAQ:GDS) shares gapped down before the market opened on Thursday . The stock had previously closed at $31.61, but opened at $30.49. GDS shares last traded at $30.7070, with a volume of 272,926 shares.

Analyst Ratings Changes

A number of research firms have recently issued reports on GDS. Piper Sandler set a $36.00 target price on shares of GDS in a report on Thursday, May 21st. Weiss Ratings raised shares of GDS from a “hold (c-)” rating to a “hold (c)” rating in a research note on Monday, May 18th. Wall Street Zen upgraded shares of GDS from a “sell” rating to a “hold” rating in a research report on Saturday, May 2nd. Morgan Stanley reaffirmed an “overweight” rating and set a $64.00 price objective on shares of GDS in a research note on Tuesday, March 17th. Finally, TD Cowen cut their price objective on shares of GDS from $37.00 to $36.00 and set a “buy” rating for the company in a report on Thursday, May 21st. Two equities research analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Buy” and a consensus price target of $48.04.

GDS Stock Performance

The company has a current ratio of 1.87, a quick ratio of 1.87 and a debt-to-equity ratio of 1.25. The firm has a fifty day moving average price of $37.24 and a 200 day moving average price of $39.96. The firm has a market cap of $6.00 billion, a PE ratio of 19.07 and a beta of 0.41.

GDS (NASDAQ:GDS) last announced its quarterly earnings data on Friday, May 15th. The company reported $1.53 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.03) by $1.56. GDS had a net margin of 23.83% and a return on equity of 15.62%. The firm had revenue of $426.12 million during the quarter, compared to analyst estimates of $436.44 million. During the same quarter in the prior year, the firm posted $3.47 earnings per share. GDS’s quarterly revenue was up 23.7% on a year-over-year basis. As a group, equities research analysts expect that GDS Holdings will post 5.65 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Judy Qing Ye sold 37,394 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $36.21, for a total value of $1,354,036.74. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Yixin Qian sold 10,000 shares of the firm’s stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $35.25, for a total transaction of $352,500.00. Following the sale, the vice president owned 66,865 shares of the company’s stock, valued at $2,356,991.25. This represents a 13.01% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 7.99% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Parallel Advisors LLC grew its position in GDS by 6.2% in the first quarter. Parallel Advisors LLC now owns 7,330 shares of the company’s stock worth $295,000 after acquiring an additional 429 shares during the period. Bank of America Corp DE raised its position in GDS by 25.5% in the first quarter. Bank of America Corp DE now owns 2,177,301 shares of the company’s stock valued at $87,723,000 after purchasing an additional 442,414 shares during the period. EverSource Wealth Advisors LLC raised its position in GDS by 73.5% in the first 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 period. Electron Capital Partners LLC lifted its stake in shares of GDS by 640.6% in the 1st quarter. Electron Capital Partners LLC now owns 780,979 shares of the company’s stock valued at $31,466,000 after purchasing an additional 675,531 shares during the last quarter. Finally, The Manufacturers Life Insurance Company acquired a new position in shares of GDS in the 1st quarter valued at $11,988,000. 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.