Bank of America Corp DE Grows Holdings in GDS Holdings $GDS

Key Points

• Bank of America increased its GDS Holdings stake by 25.5% in the first quarter, bringing its holdings to 2.18 million shares worth approximately $87.7 million. Other institutional investors also expanded their positions, with institutions collectively owning 33.71% of GDS.
• GDS reported quarterly earnings of $1.53 per share, far exceeding the consensus estimate of a $0.03 loss, while revenue rose 23.7% year over year to $426.1 million, slightly below estimates.
• Analysts maintain a generally positive view, with GDS carrying a “Moderate Buy” consensus rating and an average price target of $48.33 versus a recent trading price near $31.98. However, company insiders recently sold shares, including two transactions totaling roughly $1.7 million.

Bank of America Corp DE lifted its stake in shares of GDS Holdings (NASDAQ:GDS - Free Report) by 25.5% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 2,177,301 shares of the company's stock after buying an additional 442,414 shares during the quarter. Bank of America Corp DE owned approximately 1.12% of GDS worth $87,723,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also made changes to their positions in GDS. Sachem Head Capital Management LP boosted its stake in GDS by 45.0% during the 4th quarter. Sachem Head Capital Management LP now owns 9,300,000 shares of the company's stock valued at $324,570,000 after acquiring an additional 2,885,000 shares during the last quarter. Canada Pension Plan Investment Board grew its holdings in GDS by 77.7% during the 2nd quarter. Canada Pension Plan Investment Board now owns 7,004,083 shares of the company's stock worth $214,115,000 after acquiring an additional 3,062,658 shares in the last quarter. Triata Capital Ltd increased its position in shares of GDS by 23.5% in the 4th quarter. Triata Capital Ltd now owns 2,974,298 shares of the company's stock worth $103,803,000 after purchasing an additional 566,345 shares during the last quarter. Carrhae Capital LLP increased its position in shares of GDS by 31.5% in the 4th quarter. Carrhae Capital LLP now owns 2,167,199 shares of the company's stock worth $75,635,000 after purchasing an additional 518,921 shares during the last quarter. Finally, Alyeska Investment Group L.P. raised its stake in shares of GDS by 62.0% in the 3rd quarter. Alyeska Investment Group L.P. now owns 1,892,103 shares of the company's stock valued at $73,224,000 after purchasing an additional 724,290 shares in the last quarter. Institutional investors own 33.71% of the company's stock.

Insider Activity

In related news, VP Yixin Qian sold 10,000 shares of the stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $35.25, for a total value of $352,500.00. Following the sale, the vice president owned 66,865 shares of the company's stock, valued at $2,356,991.25. This trade represents a 13.01% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Judy Qing Ye sold 37,394 shares of GDS stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $36.21, for a total transaction of $1,354,036.74. The disclosure for this sale is available in the SEC filing. 7.99% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on the stock. TD Cowen reduced their price target on shares of GDS from $37.00 to $36.00 and set a "buy" rating on the stock in a research report on Thursday, May 21st. Piper Sandler set a $36.00 price objective on GDS in a report on Thursday, May 21st. Wall Street Zen raised GDS from a "sell" rating to a "hold" rating in a report on Saturday, May 2nd. Zacks Research cut GDS from a "strong-buy" rating to a "hold" rating in a research note on Friday, July 24th. Finally, Weiss Ratings raised GDS from a "hold (c-)" rating to a "hold (c)" rating in a report on Monday, May 18th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $48.33.

GDS Trading Up 0.4%

NASDAQ:GDS opened at $31.98 on Friday. GDS Holdings has a 12-month low of $26.97 and a 12-month high of $48.61. The firm has a market capitalization of $6.41 billion, a P/E ratio of 20.37 and a beta of 0.43. 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 business has a 50 day simple moving average of $32.35 and a 200 day simple moving average of $38.89.

GDS (NASDAQ:GDS - Get Free Report) last issued its earnings results on Friday, May 15th. The company reported $1.53 earnings per share for the quarter, topping the consensus estimate of ($0.03) by $1.56. The firm had revenue of $426.12 million for the quarter, compared to analyst estimates of $436.44 million. GDS had a return on equity of 15.62% and a net margin of 23.83%.The firm's revenue for the quarter was up 23.7% on a year-over-year basis. During the same period last year, the company earned $3.47 earnings per share. Equities research analysts predict that GDS Holdings will post 5.81 EPS for the current year.

GDS Company 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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