GDS (NASDAQ:GDS) Shares Gap Up – Should You Buy?

GDS Holdings Limited (NASDAQ:GDS) shares gapped up prior to trading on Tuesday . The stock had previously closed at $25.40, but opened at $26.50. GDS shares last traded at $27.54, with a volume of 305,245 shares traded.

Analyst Ratings Changes

Separately, Royal Bank of Canada reiterated an “outperform” rating and issued a $26.00 target price on shares of GDS in a research note on Thursday, December 5th. One research analyst has rated the stock with a sell rating, one has assigned a hold rating, two have assigned a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $18.47.

GDS Price Performance

The firm’s 50 day moving average price is $21.09 and its two-hundred day moving average price is $17.43. The stock has a market cap of $5.21 billion, a PE ratio of -8.96 and a beta of 0.18. The company has a debt-to-equity ratio of 2.25, a current ratio of 1.19 and a quick ratio of 1.19.

Hedge Funds Weigh In On GDS

Several hedge funds have recently bought and sold shares of GDS. Bamco Inc. NY grew its stake 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 acquiring an additional 3,397,592 shares in the last quarter. Sachem Head Capital Management LP grew its stake in 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 acquiring an additional 1,745,000 shares in the last quarter. Baupost Group LLC MA grew its stake in GDS by 63.5% during the second quarter. Baupost Group LLC MA now owns 4,249,952 shares of the company’s stock valued at $39,482,000 after acquiring an additional 1,649,952 shares in the last quarter. Healthcare of Ontario Pension Plan Trust Fund purchased a new position in GDS during the third quarter valued at approximately $27,212,000. Finally, Portolan Capital Management LLC purchased a new position in GDS during the third quarter valued at approximately $26,572,000. 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.