GDS Holdings $GDS Position Trimmed by Royal Bank of Canada

Key Points

• Royal Bank of Canada cut its GDS Holdings stake by 27.8% in the first quarter, selling 77,081 shares and retaining 200,682 shares worth approximately $8.1 million. Institutional investors collectively own 33.71% of the company.
• GDS reported quarterly EPS of $1.53, beating consensus estimates by $1.56, while revenue rose 23.7% year over year to $426.12 million but fell short of forecasts.
• The stock opened at $31.41, down 1.8%, while analysts maintained a broadly positive outlook with a consensus “Moderate Buy” rating and an average price target of $48.33.

Royal Bank of Canada decreased its holdings in GDS Holdings (NASDAQ:GDS - Free Report) by 27.8% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 200,682 shares of the company's stock after selling 77,081 shares during the period. Royal Bank of Canada owned about 0.10% of GDS worth $8,086,000 as of its most recent SEC filing.

A number of other hedge funds have also made changes to their positions in GDS. Leonteq Securities AG purchased a new position in GDS during the fourth quarter valued at approximately $34,000. Advisors Asset Management Inc. acquired a new stake in shares of GDS during the 1st quarter valued at $25,000. NewEdge Advisors LLC purchased a new position in shares of GDS during the 1st quarter valued at $25,000. Summit Securities Group LLC purchased a new position in shares of GDS during the 1st quarter valued at $65,000. Finally, Van ECK Associates Corp grew its holdings in shares of GDS by 245.3% during the 4th quarter. Van ECK Associates Corp now owns 1,692 shares of the company's stock valued at $59,000 after acquiring an additional 1,202 shares in the last quarter. 33.71% of the stock is owned by hedge funds and other institutional investors.

GDS Stock Down 1.8%

GDS stock opened at $31.41 on Tuesday. The company has a debt-to-equity ratio of 1.25, a current ratio of 1.87 and a quick ratio of 1.87. GDS Holdings has a fifty-two week low of $26.97 and a fifty-two week high of $48.61. The firm has a fifty day moving average price of $32.27 and a two-hundred day moving average price of $38.83. The firm has a market cap of $6.29 billion, a price-to-earnings ratio of 20.01 and a beta of 0.43.

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

Insider Buying and Selling

In related news, VP Yixin Qian sold 10,000 shares of the business's stock in a transaction 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 sale, the vice president owned 66,865 shares of the company's stock, valued at $2,356,991.25. The trade was a 13.01% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Judy Qing Ye sold 37,394 shares of the stock in a transaction 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 SEC filing for this sale provides additional information. 7.99% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

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

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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