GDS (NASDAQ:GDS) Shares Gap Down – Time to Sell?

GDS Holdings Limited (NASDAQ:GDS)’s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $23.49, but opened at $21.45. GDS shares last traded at $20.39, with a volume of 578,109 shares trading hands.

Analysts Set New Price Targets

Several brokerages have recently commented on GDS. Bank of America increased their price objective on GDS from $12.40 to $22.40 and gave the company a “buy” rating in a report on Tuesday, August 27th. Nomura Securities raised shares of GDS to a “strong-buy” rating in a research report on Monday, August 26th. Finally, Royal Bank of Canada boosted their target price on shares of GDS from $14.00 to $26.00 and gave the stock an “outperform” rating in a research report on Monday, October 14th. One investment analyst has rated the stock with a sell rating, one has given a hold rating, three have issued a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $18.29.

GDS Price Performance

The stock has a fifty day moving average of $20.91 and a 200 day moving average of $14.46. The company has a debt-to-equity ratio of 2.30, a current ratio of 1.39 and a quick ratio of 1.39. The stock has a market cap of $3.93 billion, a price-to-earnings ratio of -6.33 and a beta of 0.23.

GDS (NASDAQ:GDS) last announced its quarterly earnings results on Wednesday, August 21st. The company reported ($0.18) earnings per share for the quarter, topping the consensus estimate of ($0.25) by $0.07. The company had revenue of $388.92 million for the quarter, compared to the consensus estimate of $384.14 million. GDS had a negative return on equity of 9.10% and a negative net margin of 39.96%. On average, analysts expect that GDS Holdings Limited will post -1.14 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Blue Trust Inc. raised its position in shares of GDS by 1,558.3% in the third quarter. Blue Trust Inc. now owns 2,504 shares of the company’s stock valued at $51,000 after buying an additional 2,353 shares during the last quarter. Public Employees Retirement System of Ohio purchased a new stake in GDS during the 3rd quarter valued at about $64,000. Signaturefd LLC raised its holdings in GDS by 17.3% in the 3rd quarter. Signaturefd LLC now owns 8,221 shares of the company’s stock valued at $168,000 after acquiring an additional 1,215 shares during the last quarter. Brookfield Corp ON purchased a new position in GDS in the 3rd quarter worth approximately $171,000. Finally, Vanguard Personalized Indexing Management LLC acquired a new position in shares of GDS during the 2nd quarter worth approximately $108,000. 33.71% of the stock is owned by hedge funds and other 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.