GDS (NASDAQ:GDS) Shares Up 8.4% - Should You Buy?

Key Points

• GDS Holdings' share price increased by 8.4% to $36.33, despite a significant decline in trading volume compared to its average.
• Analysts have mixed ratings for GDS, with upgrades from Wall Street Zen to 'hold' and JPMorgan upgrading to 'overweight' with a new target price of $46.00.
• A substantial influx of institutional investment was noted, including a massive 2,390% increase in holdings by Brooklyn Investment Group in the first quarter.

GDS Holdings (NASDAQ:GDS - Get Free Report)'s share price shot up 8.4% on Thursday . The company traded as high as $35.60 and last traded at $36.33. 910,283 shares were traded during mid-day trading, a decline of 67% from the average session volume of 2,735,302 shares. The stock had previously closed at $33.50.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on GDS. Wall Street Zen upgraded shares of GDS from a "sell" rating to a "hold" rating in a research note on Wednesday, May 21st. Zacks Research cut shares of GDS from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, August 26th. JPMorgan Chase & Co. upgraded shares of GDS from a "neutral" rating to an "overweight" rating and upped their target price for the company from $34.00 to $46.00 in a research note on Wednesday, July 16th. BMO Capital Markets upgraded shares of GDS to a "market perform" rating in a research note on Wednesday, July 16th. Finally, Daiwa Capital Markets restated a "buy" rating on shares of GDS in a research note on Wednesday, May 28th. Two research analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $46.93.

GDS Stock Up 14.4%

The company has a debt-to-equity ratio of 1.71, a quick ratio of 2.00 and a current ratio of 2.00. The firm's fifty day simple moving average is $34.57 and its 200 day simple moving average is $29.99. The stock has a market capitalization of $7.30 billion, a price-to-earnings ratio of 11.34 and a beta of 0.34.

Hedge Funds Weigh In On GDS

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Brooklyn Investment Group boosted 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 purchasing an additional 956 shares during the period. Advisors Asset Management Inc. acquired a new stake in shares of GDS during the first quarter worth $25,000. NewEdge Advisors LLC acquired a new stake in shares of GDS during the first quarter worth $25,000. Summit Securities Group LLC acquired a new stake in shares of GDS during the first quarter worth $26,000. Finally, Huntington National Bank lifted its holdings in shares of GDS by 83,700.0% during the second quarter. Huntington National Bank now owns 838 shares of the company's stock worth $26,000 after buying an additional 837 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.

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