GDS (NASDAQ:GDS) Shares Gap Down – Should You Sell?

Shares of GDS Holdings Limited (NASDAQ:GDS) gapped down prior to trading on Tuesday . The stock had previously closed at $28.41, but opened at $27.12. GDS shares last traded at $27.21, with a volume of 553,111 shares.

Analyst Ratings Changes

GDS has been the subject of several research reports. Daiwa Capital Markets upgraded shares of GDS from a “neutral” rating to a “buy” rating in a research report on Tuesday, February 11th. Jefferies Financial Group raised GDS from a “hold” rating to a “buy” rating and set a $45.00 price objective on the stock in a report on Tuesday, March 18th. Raymond James upgraded shares of GDS from an “outperform” rating to a “strong-buy” rating and set a $53.00 price target on the stock in a research report on Thursday, March 20th. Royal Bank of Canada lowered shares of GDS from an “outperform” rating to a “sector perform” rating and boosted their price objective for the stock from $26.00 to $37.00 in a report on Tuesday, February 25th. Finally, JMP Securities initiated coverage on shares of GDS in a report on Monday, January 27th. They set an “outperform” rating and a $35.00 target price on the stock. One research analyst has rated the stock with a sell rating, two have issued a hold rating, four have issued a buy rating and three have issued a strong buy rating to the company. Based on data from MarketBeat.com, GDS presently has a consensus rating of “Moderate Buy” and a consensus price target of $33.23.

GDS Stock Down 5.1 %

The company has a market capitalization of $5.14 billion, a P/E ratio of -8.84 and a beta of 0.07. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 2.25. The stock’s fifty day moving average is $31.47 and its 200 day moving average is $24.70.

GDS (NASDAQ:GDS) last released its quarterly earnings data on Wednesday, March 19th. The company reported ($0.10) earnings per share for the quarter, topping the consensus estimate of ($0.27) by $0.17. GDS had a negative return on equity of 8.22% and a negative net margin of 35.97%. The business had revenue of $425.13 million during the quarter, compared to analysts’ expectations of $3.11 billion. During the same quarter last year, the business posted ($2.16) EPS. The business’s revenue was up 9.1% on a year-over-year basis. Research analysts predict that GDS Holdings Limited will post -0.89 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. Public Employees Retirement System of Ohio bought a new stake in GDS during the 3rd quarter valued at approximately $64,000. PNC Financial Services Group Inc. lifted its position in GDS by 26.8% during the fourth quarter. PNC Financial Services Group Inc. now owns 3,177 shares of the company’s stock valued at $75,000 after buying an additional 672 shares during the period. Wells Fargo & Company MN boosted its holdings in shares of GDS by 1,904.2% during the 4th quarter. Wells Fargo & Company MN now owns 3,788 shares of the company’s stock valued at $90,000 after buying an additional 3,599 shares in the last quarter. Blue Trust Inc. grew its position in shares of GDS by 121.9% in the 4th quarter. Blue Trust Inc. now owns 5,557 shares of the company’s stock worth $132,000 after buying an additional 3,053 shares during the period. Finally, Brookfield Corp ON bought a new position in shares of GDS in the 3rd quarter worth about $171,000. 33.71% of the stock is currently owned by institutional investors.

GDS Company Profile

GDS Holdings Limited, together with its subsidiaries, develops and operates data centers in the People's Republic of China. The company provides colocation services comprising critical facilities space, customer-available power, racks, and cooling; managed hosting services, including business continuity and disaster recovery, network management, data storage, system security, operating system, database, and server middleware services; managed cloud services; and consulting services.