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

Key Points

• GDS Holdings shares experienced a significant drop, opening at $33.80 after closing at $35.74, and traded down by 4.7% during the session.
• Analysts are divided on GDS with JMP Securities increasing their target price to $50.00 while Zacks Research downgraded it to a "hold," contributing to an overall average rating of "Moderate Buy."
• Recent changes in institutional investments saw increased positions, with Huntington National Bank boosting its ownership by an astonishing 83,700.0% in the second quarter.

GDS Holdings (NASDAQ:GDS - Get Free Report) shares gapped down prior to trading on Tuesday . The stock had previously closed at $35.74, but opened at $33.80. GDS shares last traded at $33.88, with a volume of 536,405 shares traded.

Analyst Upgrades and Downgrades

GDS has been the topic of a number of recent research reports. JMP Securities increased their target price on GDS from $40.00 to $50.00 and gave the stock a "market outperform" rating in a report on Thursday, August 21st. Zacks Research cut GDS from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, August 26th. BMO Capital Markets upgraded GDS to a "market perform" rating in a research note on Wednesday, July 16th. Bank of America raised their price objective on GDS from $47.60 to $50.60 and gave the company a "buy" rating in a research note on Friday, August 22nd. Finally, Weiss Ratings restated a "hold (c-)" rating on shares of GDS in a research note on Wednesday, October 8th. Two investment analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat, GDS has an average rating of "Moderate Buy" and a consensus target price of $46.93.

GDS Trading Down 4.7%

The stock has a market capitalization of $6.49 billion, a PE ratio of 10.08 and a beta of 0.36. The firm has a 50-day moving average price of $36.19 and a 200-day moving average price of $30.71. The company has a current ratio of 2.00, a quick ratio of 2.00 and a debt-to-equity ratio of 1.71.

Institutional Investors Weigh In On GDS

Large investors have recently made changes to their positions in the business. Huntington National Bank increased its position in shares of GDS by 83,700.0% during the 2nd quarter. Huntington National Bank now owns 838 shares of the company's stock valued at $26,000 after purchasing an additional 837 shares during the last quarter. Advisors Asset Management Inc. purchased a new stake in GDS in the 1st quarter worth about $25,000. Brooklyn Investment Group increased its holdings in GDS by 2,390.0% in the 1st quarter. Brooklyn Investment Group now owns 996 shares of the company's stock worth $25,000 after acquiring an additional 956 shares during the last quarter. NewEdge Advisors LLC purchased a new stake in GDS in the 1st quarter worth about $25,000. Finally, Summit Securities Group LLC purchased a new stake in GDS in the 1st quarter worth about $26,000. 33.71% of the stock is owned by hedge funds and other 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.

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