AI Squared Management Ltd Has $5.82 Million Stake in GDS Holdings $GDS

Key Points

• AI Squared Management increased its stake in GDS Holdings by 69.7% in the fourth quarter, bringing its position to 166,740 shares valued at about $5.82 million. GDS now represents 6.8% of the firm’s portfolio and its 6th-largest holding.
• GDS reported strong quarterly earnings, posting $1.53 EPS versus analysts’ expectations of a loss, while revenue rose 23.7% year over year to $426.13 million. The company also beat on profitability metrics, including a 15.62% return on equity.
• Insider selling and analyst sentiment were both notable: two executives sold shares recently, while Wall Street’s overall view remains “Moderate Buy” with a consensus price target of $48.04, above the stock’s recent price of $33.76.

AI Squared Management Ltd raised its stake in shares of GDS Holdings (NASDAQ:GDS - Free Report) by 69.7% in the 4th quarter, according to its most recent disclosure with the SEC. The firm owned 166,740 shares of the company's stock after purchasing an additional 68,460 shares during the period. GDS accounts for about 6.8% of AI Squared Management Ltd's investment portfolio, making the stock its 6th biggest holding. AI Squared Management Ltd's holdings in GDS were worth $5,819,000 as of its most recent filing with the SEC.

Several other hedge funds have also bought and sold shares of GDS. Royal Bank of Canada grew its holdings in GDS by 30.7% during the first quarter. Royal Bank of Canada now owns 379,289 shares of the company's stock valued at $9,608,000 after purchasing an additional 89,059 shares during the period. Advisors Asset Management Inc. bought a new stake in GDS during the first quarter valued at about $25,000. NewEdge Advisors LLC bought a new stake in GDS during the first quarter valued at about $25,000. Northwestern Mutual Wealth Management Co. grew its holdings in GDS by 113.0% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,836 shares of the company's stock valued at $56,000 after purchasing an additional 974 shares during the period. Finally, EverSource Wealth Advisors LLC lifted its position in shares of GDS by 41.6% in the second quarter. EverSource Wealth Advisors LLC now owns 1,806 shares of the company's stock valued at $55,000 after acquiring an additional 531 shares in the last quarter. Institutional investors own 33.71% of the company's stock.

Insider Activity at GDS

In related news, Director Judy Qing Ye sold 37,394 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $36.21, for a total value of $1,354,036.74. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, VP Yixin Qian sold 10,000 shares of the stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $35.25, for a total value of $352,500.00. Following the completion of the transaction, the vice president directly owned 66,865 shares in the company, valued at approximately $2,356,991.25. This trade represents a 13.01% decrease in their position. The SEC filing for this sale provides additional information. 7.99% of the stock is owned by corporate insiders.

GDS Trading Up 0.8%

Shares of GDS stock opened at $33.76 on Friday. GDS Holdings has a 1 year low of $25.47 and a 1 year high of $48.61. The company has a debt-to-equity ratio of 1.25, a current ratio of 1.87 and a quick ratio of 1.87. The stock's 50 day simple moving average is $40.12 and its two-hundred day simple moving average is $40.28. The company has a market cap of $6.76 billion, a PE ratio of 21.50 and a beta of 0.39.

GDS (NASDAQ:GDS - Get Free Report) last issued its quarterly earnings data on Friday, May 15th. The company reported $1.53 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.03) by $1.56. GDS had a return on equity of 15.62% and a net margin of 23.83%.The business had revenue of $426.13 million for the quarter, compared to the consensus estimate of $436.44 million. During the same period in the prior year, the business posted $3.47 earnings per share. The company's quarterly revenue was up 23.7% compared to the same quarter last year. Research analysts predict that GDS Holdings will post 5.65 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on GDS. TD Cowen lowered their price objective on GDS from $37.00 to $36.00 and set a "buy" rating on the stock in a research report on Thursday, May 21st. Wall Street Zen upgraded GDS from a "sell" rating to a "hold" rating in a research report on Saturday, May 2nd. Zacks Research downgraded GDS from a "strong-buy" rating to a "hold" rating in a research report on Monday, May 18th. Piper Sandler set a $36.00 price objective on GDS in a research report on Thursday, May 21st. Finally, Weiss Ratings upgraded GDS from a "hold (c-)" rating to a "hold (c)" rating in a research report on Monday, May 18th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $48.04.

GDS Profile

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.

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