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

GDS Holdings Limited (NASDAQ:GDS - Get Free Report)'s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $28.12, but opened at $27.10. GDS shares last traded at $27.21, with a volume of 201,472 shares traded.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on GDS. Jefferies Financial Group upgraded shares of GDS from a "hold" rating to a "buy" rating and set a $45.00 target price for the company in a report on Tuesday, March 18th. JMP Securities reaffirmed a "market outperform" rating and set a $40.00 price target on shares of GDS in a research report on Wednesday, May 21st. Royal Bank of Canada downgraded 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 GDS from a "sell" rating to a "hold" rating in a research note on Wednesday, May 21st. Finally, Raymond James upgraded shares of GDS from an "outperform" rating to a "strong-buy" rating and set a $53.00 target price on the stock in a research note on Thursday, March 20th. Two equities research analysts have rated the stock with a hold rating, five have issued a buy rating and three have given a strong buy rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Buy" and an average target price of $39.48.

GDS Stock Performance

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 company has a market capitalization of $5.17 billion, a price-to-earnings ratio of -8.92 and a beta of 0.25. The firm has a 50-day simple moving average of $24.96 and a two-hundred day simple moving average of $26.50.

GDS (NASDAQ:GDS - Get Free Report) last posted its quarterly earnings data 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. GDS had a negative return on equity of 8.22% and a negative net margin of 35.97%. The company had revenue of $375.14 million during the quarter, compared to analysts' expectations of $2.72 billion. During the same period in the prior year, the business earned ($1.96) earnings per share. GDS's revenue for the quarter was up 3.6% compared to the same quarter last year. As a group, sell-side analysts forecast that GDS Holdings Limited will post -0.89 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in GDS. Advisors Asset Management Inc. acquired a new stake in GDS during the 1st quarter worth approximately $25,000. Brooklyn Investment Group increased its position in GDS by 2,390.0% during the first quarter. Brooklyn Investment Group now owns 996 shares of the company's stock worth $25,000 after buying an additional 956 shares during the last quarter. NewEdge Advisors LLC bought a new position in GDS during the first quarter worth $25,000. Summit Securities Group LLC bought a new position in GDS in the 1st quarter valued at about $26,000. Finally, PNC Financial Services Group Inc. boosted its stake in GDS by 26.8% in the 4th quarter. PNC Financial Services Group Inc. now owns 3,177 shares of the company's stock valued at $75,000 after purchasing an additional 672 shares during the period. 33.71% of the stock is currently owned by 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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