GDS (NASDAQ:GDS) Shares Gap Down - What's Next?

Shares of GDS Holdings Limited (NASDAQ:GDS - Get Free Report) 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 traded.

Analysts Set New Price Targets

GDS has been the subject of several recent research reports. Daiwa Capital Markets reiterated a "buy" rating on shares of GDS in a research report on Wednesday. Royal Bank of Canada lowered shares of GDS from an "outperform" rating to a "sector perform" rating and boosted their price target for the company from $26.00 to $37.00 in a report on Tuesday, February 25th. JMP Securities reissued a "market outperform" rating and issued a $40.00 price target on shares of GDS in a report on Wednesday, May 21st. Jefferies Financial Group raised shares of GDS from a "hold" rating to a "buy" rating and set a $45.00 price target for the company in a report on Tuesday, March 18th. Finally, Citigroup reissued an "outperform" rating on shares of GDS in a report on Thursday, March 20th. Two equities research analysts have rated the stock with a hold rating, five have assigned a buy rating and three have given a strong buy rating to the company. According to MarketBeat.com, GDS presently has an average rating of "Buy" and a consensus target price of $39.48.

GDS Stock Performance

The stock has a market capitalization of $4.50 billion, a price-to-earnings ratio of -7.75 and a beta of 0.28. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 2.25. The stock's 50 day moving average is $24.44 and its two-hundred day moving average is $26.00.

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

Institutional Investors Weigh In On GDS

Institutional investors and hedge funds have recently modified their holdings of the company. Advisors Asset Management Inc. bought a new position in GDS in the 1st quarter valued at about $25,000. Brooklyn Investment Group boosted its position in shares of GDS by 2,390.0% during the 1st quarter. Brooklyn Investment Group now owns 996 shares of the company's stock worth $25,000 after acquiring an additional 956 shares in the last quarter. NewEdge Advisors LLC acquired a new stake in shares of GDS during the 1st quarter worth approximately $25,000. Summit Securities Group LLC acquired a new stake in shares of GDS during the 1st quarter worth approximately $26,000. Finally, PNC Financial Services Group Inc. boosted its position in GDS by 26.8% in the fourth quarter. PNC Financial Services Group Inc. now owns 3,177 shares of the company's stock valued at $75,000 after buying an additional 672 shares in the last quarter. 33.71% of the stock is owned by institutional investors.

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.