GDS (NASDAQ:GDS) Shares Gap Down - Here's Why

GDS Holdings Limited (NASDAQ:GDS - Get Free Report) shares gapped down prior to trading on Wednesday . The stock had previously closed at $27.14, but opened at $24.84. GDS shares last traded at $25.00, with a volume of 2,854,934 shares trading hands.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on GDS shares. Royal Bank of Canada lowered shares of GDS from an "outperform" rating to a "sector perform" rating and increased their price objective for the company from $26.00 to $37.00 in a research report on Tuesday, February 25th. Wall Street Zen upgraded shares of GDS from a "sell" rating to a "hold" rating in a research note on Wednesday, May 21st. Jefferies Financial Group upgraded shares of GDS from a "hold" rating to a "buy" rating and set a $45.00 target price on the stock in a research report on Tuesday, March 18th. Citigroup restated an "outperform" rating on shares of GDS in a report on Thursday, March 20th. Finally, Raymond James upgraded shares of GDS from an "outperform" rating to a "strong-buy" rating and set a $53.00 price target for the company in a report on Thursday, March 20th. Two investment analysts have rated the stock with a hold rating, five have issued a buy rating and three have assigned a strong buy rating to the company. According to data from MarketBeat.com, GDS currently has an average rating of "Buy" and a consensus price target of $39.48.

GDS Stock Down 9.5%

The firm has a market cap of $4.68 billion, a P/E ratio of -8.08 and a beta of 0.28. The stock's 50 day simple moving average is $24.63 and its 200 day simple moving average is $25.97. The company has a debt-to-equity ratio of 2.25, a quick ratio of 1.19 and a current ratio of 1.19.

GDS (NASDAQ:GDS - Get Free Report) last posted its quarterly earnings data on Tuesday, May 20th. The company reported $0.48 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.22) by $0.70. The firm had revenue of $375.14 million for the quarter, compared to the consensus estimate of $2.72 billion. GDS had a negative net margin of 35.97% and a negative return on equity of 8.22%. The business's revenue for the quarter was up 3.6% compared to the same quarter last year. During the same period in the previous year, the firm earned ($1.96) EPS. Research analysts anticipate that GDS Holdings Limited will post -0.89 EPS for the current year.

Hedge Funds Weigh In On GDS

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Bayforest Capital Ltd bought a new stake in GDS in the 1st quarter valued at about $624,000. Woodline Partners LP increased its position in shares of GDS by 7.0% in the first quarter. Woodline Partners LP now owns 219,745 shares of the company's stock worth $5,566,000 after purchasing an additional 14,468 shares during the last quarter. Scientech Research LLC bought a new position in shares of GDS in the first quarter worth approximately $852,000. NewEdge Advisors LLC purchased a new stake in GDS in the first quarter worth approximately $25,000. Finally, Electron Capital Partners LLC purchased a new stake in GDS in the first quarter worth approximately $1,763,000. 33.71% of the stock is owned by hedge funds and other institutional investors.

About GDS

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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