GDS (NASDAQ:GDS) Shares Down 5.8% - Here's What Happened

Key Points

• GDS Holdings shares fell by 5.8% on Tuesday, trading at $34.72 after previously closing at $36.87, marking a significant decline in average trading volume.
• Analysts have mixed ratings for GDS, with JPMorgan Chase upgrading its rating to "overweight" and raising the price target from $34 to $46, while the consensus price target stands at $40.57.
• GDS reported earnings per share of $0.48, exceeding expectations, but its quarterly revenue of $375.14 million fell short of the anticipated $2.72 billion.

GDS Holdings (NASDAQ:GDS - Get Free Report)'s stock price was down 5.8% on Tuesday . The stock traded as low as $35.49 and last traded at $34.72. Approximately 295,603 shares traded hands during trading, a decline of 89% from the average daily volume of 2,741,463 shares. The stock had previously closed at $36.87.

Analysts Set New Price Targets

A number of research analysts have commented on GDS shares. JPMorgan Chase & Co. raised GDS from a "neutral" rating to an "overweight" rating and upped their price objective for the company from $34.00 to $46.00 in a report on Wednesday, July 16th. Daiwa Capital Markets reaffirmed a "buy" rating on shares of GDS in a report on Wednesday, May 28th. BMO Capital Markets raised GDS to a "market perform" rating in a report on Wednesday, July 16th. Wall Street Zen raised GDS from a "sell" rating to a "hold" rating in a report on Wednesday, May 21st. Finally, JMP Securities reaffirmed a "market outperform" rating and issued a $40.00 price objective on shares of GDS in a report on Wednesday, May 21st. Three analysts have rated the stock with a hold rating, six have issued a buy rating and three have assigned a strong buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Buy" and a consensus price target of $40.57.

GDS Price Performance

The company has a debt-to-equity ratio of 1.62, a quick ratio of 1.47 and a current ratio of 1.47. The business has a 50 day simple moving average of $31.93 and a two-hundred day simple moving average of $29.67. The firm has a market capitalization of $6.92 billion, a P/E ratio of 11.14 and a beta of 0.33.

GDS (NASDAQ:GDS - Get Free Report) last issued its earnings results on Tuesday, May 20th. The company reported $0.48 earnings per share for the quarter, beating the consensus estimate of ($0.22) by $0.70. The company had revenue of $375.14 million during the quarter, compared to analysts' expectations of $2.72 billion. GDS had a return on equity of 0.78% and a net margin of 39.90%. GDS's quarterly revenue was up 3.6% compared to the same quarter last year. During the same period in the prior year, the business posted ($1.96) EPS. On average, sell-side analysts expect that GDS Holdings will post -0.89 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Bamco Inc. NY increased its stake in GDS by 10.5% in the 4th quarter. Bamco Inc. NY now owns 6,673,226 shares of the company's stock worth $158,556,000 after buying an additional 632,671 shares in the last quarter. Aspex Management HK Ltd boosted its stake in GDS by 23.0% during the fourth quarter. Aspex Management HK Ltd now owns 4,926,727 shares of the company's stock valued at $117,059,000 after buying an additional 922,709 shares during the last quarter. Driehaus Capital Management LLC boosted its stake in GDS by 195.6% during the fourth quarter. Driehaus Capital Management LLC now owns 1,845,623 shares of the company's stock valued at $43,852,000 after buying an additional 1,221,289 shares during the last quarter. Triata Capital Ltd bought a new position in shares of GDS in the 4th quarter valued at about $41,472,000. Finally, Massachusetts Financial Services Co. MA lifted its stake in shares of GDS by 0.9% in the 1st quarter. Massachusetts Financial Services Co. MA now owns 1,177,503 shares of the company's stock valued at $29,826,000 after purchasing an additional 10,838 shares during the last quarter. Hedge funds and other institutional investors own 33.71% of the company's stock.

GDS Company Profile

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.

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