GDS (NASDAQ:GDS) Shares Gap Up - Should You Buy?

GDS Holdings (NASDAQ:GDS - Get Free Report)'s share price gapped up before the market opened on Tuesday . The stock had previously closed at $35.00, but opened at $39.25. GDS shares last traded at $38.36, with a volume of 2,619,456 shares.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on GDS shares. JPMorgan Chase & Co. raised shares of GDS from a "neutral" rating to an "overweight" rating and upped their price target for the stock from $34.00 to $46.00 in a research report on Wednesday. Citigroup reaffirmed an "outperform" rating on shares of GDS in a research report on Thursday, March 20th. Raymond James Financial raised shares of GDS from an "outperform" rating to a "strong-buy" rating and set a $53.00 price target for the company in a research report on Thursday, March 20th. Daiwa Capital Markets reaffirmed a "buy" rating on shares of GDS in a research report on Wednesday, May 28th. Finally, Wall Street Zen raised shares of GDS from a "sell" rating to a "hold" rating in a research report on Wednesday, May 21st. Three equities research analysts have rated the stock with a hold rating, six have assigned 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 a consensus price target of $40.57.

GDS Trading Down 0.7%

The company has a current ratio of 1.47, a quick ratio of 1.47 and a debt-to-equity ratio of 1.62. The business's 50-day simple moving average is $28.82 and its two-hundred day simple moving average is $28.16. The company has a market capitalization of $7.18 billion, a PE ratio of 11.60 and a beta of 0.31.

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 analysts' consensus estimates 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 net margin of 39.90% and a return on equity of 0.78%. The firm's revenue for the quarter was up 3.6% on a year-over-year basis. During the same period in the prior year, the company posted ($1.96) EPS. On average, analysts predict that GDS Holdings will post -0.89 earnings per share for the current year.

Hedge Funds Weigh In On GDS

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Brooklyn Investment Group lifted its position in shares of 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 purchasing an additional 956 shares during the last quarter. Advisors Asset Management Inc. bought a new position in shares of GDS during the first quarter worth about $25,000. NewEdge Advisors LLC bought a new position in shares of GDS during the first quarter worth about $25,000. Summit Securities Group LLC bought a new position in shares of GDS during the first quarter worth about $26,000. Finally, PNC Financial Services Group Inc. lifted its position in shares of GDS by 26.8% during the fourth quarter. PNC Financial Services Group Inc. now owns 3,177 shares of the company's stock worth $75,000 after purchasing an additional 672 shares during the last quarter. 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.