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

GDS Holdings Limited (NASDAQ:GDS)’s stock price gapped down before the market opened on Monday . The stock had previously closed at $44.76, but opened at $40.41. GDS shares last traded at $38.23, with a volume of 2,985,563 shares traded.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on GDS shares. Jefferies Financial Group lowered shares of GDS from a “buy” rating to a “hold” rating and lifted their price target for the company from $27.06 to $45.00 in a research note on Monday. Royal Bank of Canada reiterated an “outperform” rating and issued a $26.00 price target on shares of GDS in a research note on Wednesday, January 29th. Raymond James boosted their price objective on shares of GDS from $25.00 to $53.00 and gave the stock an “outperform” rating in a research note on Friday. Daiwa Capital Markets upgraded shares of GDS from a “neutral” rating to a “buy” rating in a research note on Tuesday, February 11th. 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 for the company. Three research analysts have rated the stock with a hold rating, five have given a buy rating and two have assigned a strong buy rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $31.40.

GDS Stock Performance

The stock’s fifty day moving average price is $26.17 and its two-hundred day moving average price is $21.64. The company has a debt-to-equity ratio of 2.25, a quick ratio of 1.19 and a current ratio of 1.19. The company has a market cap of $7.46 billion, a P/E ratio of -12.84 and a beta of 0.12.

Institutional Trading of GDS

A number of institutional investors and hedge funds have recently made changes to their positions in GDS. Bamco Inc. NY lifted its holdings in shares of GDS by 128.6% during the 3rd quarter. Bamco Inc. NY now owns 6,040,555 shares of the company’s stock worth $123,227,000 after acquiring an additional 3,397,592 shares during the period. American Century Companies Inc. lifted its holdings in shares of GDS by 509.6% during the 4th quarter. American Century Companies Inc. now owns 2,323,482 shares of the company’s stock worth $55,206,000 after acquiring an additional 1,942,341 shares during the period. Triata Capital Ltd bought a new stake in shares of GDS during the 4th quarter worth approximately $41,472,000. Sachem Head Capital Management LP increased its position in GDS by 161.6% during the 3rd quarter. Sachem Head Capital Management LP now owns 2,825,000 shares of the company’s stock worth $57,630,000 after purchasing an additional 1,745,000 shares in the last quarter. Finally, Healthcare of Ontario Pension Plan Trust Fund acquired a new position in GDS during the 3rd quarter worth approximately $27,212,000. Institutional investors own 33.71% of the company’s stock.

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.