GDS (NASDAQ:GDS) Trading Down 5% – Should You Sell?

GDS Holdings (NASDAQ:GDS)’s stock price traded down 5% during mid-day trading on Friday . The company traded as low as $40.93 and last traded at $41.2150. 863,117 shares were traded during mid-day trading, a decline of 70% from the average session volume of 2,888,735 shares. The stock had previously closed at $43.40.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on the stock. TD Cowen cut their price objective on shares of GDS from $38.00 to $37.00 and set a “buy” rating for the company in a research report on Thursday, November 20th. Weiss Ratings reissued a “hold (c)” rating on shares of GDS in a research note on Monday, December 29th. Macquarie set a $46.70 price objective on GDS in a research report on Thursday, November 6th. UBS Group set a $55.00 target price on GDS in a research report on Monday, December 1st. Finally, Raymond James Financial restated a “strong-buy” rating on shares of GDS in a report on Tuesday. Two research analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, GDS currently has an average rating of “Moderate Buy” and a consensus target price of $46.70.

GDS Trading Down 6.3%

The company has a debt-to-equity ratio of 1.65, a quick ratio of 2.51 and a current ratio of 2.51. The company has a market capitalization of $7.75 billion, a PE ratio of 10.19 and a beta of 0.34. The business has a fifty day moving average price of $35.36 and a 200 day moving average price of $35.48.

GDS (NASDAQ:GDS) last posted its quarterly earnings results on Wednesday, November 19th. The company reported $0.45 EPS for the quarter, beating the consensus estimate of ($0.06) by $0.51. GDS had a net margin of 49.60% and a return on equity of 5.17%. The firm had revenue of $405.28 million for the quarter, compared to analyst estimates of $402.81 million. During the same quarter last year, the firm posted ($0.14) earnings per share. GDS’s revenue for the quarter was up 10.2% compared to the same quarter last year. Analysts expect that GDS Holdings will post -0.89 EPS for the current fiscal year.

Institutional Investors Weigh In On GDS

Several institutional investors and hedge funds have recently modified their holdings of the stock. Royal Bank of Canada lifted its position in GDS by 30.7% during the 1st quarter. Royal Bank of Canada now owns 379,289 shares of the company’s stock worth $9,608,000 after acquiring an additional 89,059 shares in the last quarter. Advisors Asset Management Inc. purchased a new stake in shares of GDS during the first quarter valued at approximately $25,000. NewEdge Advisors LLC purchased a new position in shares of GDS in the first quarter valued at $25,000. Wealth Enhancement Advisory Services LLC purchased a new position in shares of GDS in the second quarter valued at $306,000. Finally, Farther Finance Advisors LLC grew its holdings in GDS by 6,289.2% during the 2nd quarter. Farther Finance Advisors LLC now owns 14,759 shares of the company’s stock valued at $451,000 after purchasing an additional 14,528 shares in the last quarter. Hedge funds and other institutional investors own 33.71% of the company’s stock.

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.