GDS (NASDAQ:GDS) Stock Price Down 6.7% – Should You Sell?

Shares of GDS Holdings Limited (NASDAQ:GDS) were down 6.7% during trading on Wednesday . The company traded as low as $17.67 and last traded at $18.37. Approximately 953,342 shares traded hands during trading, a decline of 40% from the average daily volume of 1,596,700 shares. The stock had previously closed at $19.68.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on GDS. Royal Bank of Canada increased their price objective on shares of GDS from $14.00 to $26.00 and gave the company an “outperform” rating in a report on Monday, October 14th. Nomura Securities raised GDS to a “strong-buy” rating in a research note on Monday, August 26th. Finally, Bank of America lifted their target price on GDS from $12.40 to $22.40 and gave the stock a “buy” rating in a report on Tuesday, August 27th. One equities research 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 presently has an average rating of “Moderate Buy” and a consensus price target of $18.29.

GDS Trading Down 0.6 %

The company has a debt-to-equity ratio of 2.30, a quick ratio of 1.39 and a current ratio of 1.39. The firm has a market capitalization of $3.52 billion, a P/E ratio of -6.05 and a beta of 0.23. The firm has a 50 day moving average price of $21.05 and a two-hundred day moving average price of $14.60.

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

Institutional Investors Weigh In On GDS

Several hedge funds have recently made changes to their positions in the company. Canada Pension Plan Investment Board raised its stake in GDS by 0.4% during the 1st quarter. Canada Pension Plan Investment Board now owns 9,713,325 shares of the company’s stock valued at $64,594,000 after purchasing an additional 33,978 shares during the period. Bamco Inc. NY raised its position in GDS by 128.6% during the third quarter. Bamco Inc. NY now owns 6,040,555 shares of the company’s stock valued at $123,227,000 after buying an additional 3,397,592 shares during the period. Baupost Group LLC MA lifted its stake in GDS by 63.5% in the 2nd quarter. Baupost Group LLC MA now owns 4,249,952 shares of the company’s stock worth $39,482,000 after acquiring an additional 1,649,952 shares in the last quarter. Sachem Head Capital Management LP lifted its stake in GDS by 161.6% in the 3rd quarter. Sachem Head Capital Management LP now owns 2,825,000 shares of the company’s stock worth $57,630,000 after acquiring an additional 1,745,000 shares in the last quarter. Finally, Healthcare of Ontario Pension Plan Trust Fund purchased a new position in GDS during the 3rd quarter valued at about $27,212,000. Hedge funds and other institutional investors own 33.71% of the company’s stock.

About GDS

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.