WCM Investment Management LLC Takes Position in GDS Holdings $GDS

Key Points

• WCM Investment Management bought a new position in GDS Holdings during the first quarter, acquiring 1,733,937 shares valued at about $68.1 million and representing roughly 0.89% of the company.
• Several other institutional investors also increased or initiated stakes in GDS, and institutions now own about 33.71% of the stock.
• Analysts remain generally bullish on GDS, with a consensus Buy rating and an average price target of $48.33, while the company also reported strong quarterly EPS of $1.53, far above estimates.

WCM Investment Management LLC purchased a new position in GDS Holdings (NASDAQ:GDS - Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund purchased 1,733,937 shares of the company's stock, valued at approximately $68,092,000. WCM Investment Management LLC owned about 0.89% of GDS as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors also recently modified their holdings of GDS. Parallel Advisors LLC lifted its position in shares of GDS by 6.2% during the 1st quarter. Parallel Advisors LLC now owns 7,330 shares of the company's stock valued at $295,000 after acquiring an additional 429 shares during the last quarter. Future Fund LLC grew its holdings in shares of GDS by 25.3% in the 1st quarter. Future Fund LLC now owns 89,821 shares of the company's stock worth $3,619,000 after acquiring an additional 18,122 shares during the last quarter. Hsbc Holdings PLC grew its holdings in shares of GDS by 294.4% in the 1st quarter. Hsbc Holdings PLC now owns 1,220,693 shares of the company's stock worth $48,746,000 after acquiring an additional 911,191 shares during the last quarter. Summit Securities Group LLC acquired a new stake in shares of GDS during the first quarter worth $65,000. Finally, Impact Investors Inc acquired a new stake in shares of GDS during the first quarter worth $245,000. Institutional investors own 33.71% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on the company. Piper Sandler set a $36.00 price target on GDS in a research report on Thursday, May 21st. TD Cowen cut their price objective on GDS from $37.00 to $36.00 and set a "buy" rating on the stock in a report on Thursday, May 21st. Weiss Ratings raised shares of GDS from a "hold (c-)" rating to a "hold (c)" rating in a research note on Monday, May 18th. Wall Street Zen upgraded shares of GDS from a "sell" rating to a "hold" rating in a report on Saturday, May 2nd. Finally, Zacks Research raised shares of GDS from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, June 16th. Two equities research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Buy" and an average price target of $48.33.

GDS Price Performance

GDS opened at $31.16 on Monday. The firm has a market capitalization of $6.24 billion, a P/E ratio of 19.85 and a beta of 0.41. The stock has a fifty day moving average of $34.40 and a 200-day moving average of $39.68. The company has a quick ratio of 1.87, a current ratio of 1.87 and a debt-to-equity ratio of 1.25. GDS Holdings has a 12-month low of $26.97 and a 12-month high of $48.61.

GDS (NASDAQ:GDS - Get Free Report) last issued its quarterly earnings results on Friday, May 15th. The company reported $1.53 earnings per share for the quarter, beating analysts' consensus estimates of ($0.03) by $1.56. The business had revenue of $426.12 million for the quarter, compared to the consensus estimate of $436.44 million. GDS had a return on equity of 15.62% and a net margin of 23.83%.GDS's revenue for the quarter was up 23.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $3.47 earnings per share. Equities analysts forecast that GDS Holdings will post 5.65 EPS for the current fiscal year.

Insider Activity

In other news, Director Judy Qing Ye sold 37,394 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $36.21, for a total value of $1,354,036.74. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Yixin Qian sold 10,000 shares of the firm's stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $35.25, for a total transaction of $352,500.00. Following the sale, the vice president owned 66,865 shares of the company's stock, valued at approximately $2,356,991.25. This represents a 13.01% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 7.99% of the company's stock.

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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