GDS (NASDAQ:GDS) Stock Price Down 6.7% – Here’s What Happened

GDS Holdings Limited (NASDAQ:GDS)’s share price traded down 6.7% on Wednesday . The stock traded as low as $17.67 and last traded at $18.37. 953,342 shares changed hands during mid-day trading, a decline of 40% from the average session volume of 1,596,700 shares. The stock had previously closed at $19.68.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the stock. Royal Bank of Canada lifted their target price on shares of GDS from $14.00 to $26.00 and gave the company an “outperform” rating in a research note on Monday, October 14th. Nomura Securities upgraded GDS to a “strong-buy” rating in a research note on Monday, August 26th. Finally, Bank of America raised their price target on GDS from $12.40 to $22.40 and gave the stock a “buy” rating in a research note on Tuesday, August 27th. One investment analyst has rated the stock with a sell rating, one has assigned a hold rating, three have assigned a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $18.29.

GDS Stock Performance

The stock has a fifty day moving average price of $21.05 and a 200 day moving average price of $14.60. The company has a current ratio of 1.39, a quick ratio of 1.39 and a debt-to-equity ratio of 2.30. The firm has a market cap of $3.52 billion, a price-to-earnings ratio of -6.05 and a beta of 0.23.

GDS (NASDAQ:GDS) last released its quarterly earnings results on Wednesday, August 21st. The company reported ($0.18) EPS for the quarter, beating analysts’ consensus estimates of ($0.25) by $0.07. The company had revenue of $388.92 million for the quarter, compared to analyst estimates of $384.14 million. GDS had a negative net margin of 35.97% and a negative return on equity of 8.28%. As a group, analysts predict that GDS Holdings Limited will post -1.14 earnings per share for the current year.

Institutional Investors Weigh In On GDS

Hedge funds and other institutional investors have recently made changes to their positions in the business. Bamco Inc. NY raised its stake in GDS by 128.6% during the 3rd quarter. Bamco Inc. NY now owns 6,040,555 shares of the company’s stock valued at $123,227,000 after purchasing an additional 3,397,592 shares during the last quarter. Sachem Head Capital Management LP raised its position in shares of GDS by 161.6% during the third quarter. Sachem Head Capital Management LP now owns 2,825,000 shares of the company’s stock valued at $57,630,000 after buying an additional 1,745,000 shares during the last quarter. Baupost Group LLC MA lifted its stake in shares of GDS by 63.5% in the second quarter. Baupost Group LLC MA now owns 4,249,952 shares of the company’s stock valued at $39,482,000 after buying an additional 1,649,952 shares during the period. Healthcare of Ontario Pension Plan Trust Fund acquired a new stake in GDS during the third quarter worth about $27,212,000. Finally, Portolan Capital Management LLC acquired a new stake in GDS during the third quarter worth about $26,572,000. 33.71% of the stock is owned by institutional investors and hedge funds.

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.