GDS (NASDAQ:GDS) Trading Down 3.8% - Time to Sell?

Key Points

• GDS Holdings shares fell 3.8% on Monday, trading between $36.41 and $36.74 with a significant decline in trading volume.
• Several analysts updated their ratings and price targets for GDS, with Bank of America raising the target from $47.60 to $50.60 and JPMorgan upgrading the stock from "neutral" to "overweight."
• Institutional investors have increased their stakes in GDS, with notable increases from EverSource Wealth Advisors and other funds, collectively owning approximately 33.71% of the company's stock.

GDS Holdings (NASDAQ:GDS - Get Free Report)'s share price dropped 3.8% during mid-day trading on Monday . The stock traded as low as $36.41 and last traded at $36.74. Approximately 573,869 shares traded hands during trading, a decline of 79% from the average daily volume of 2,776,130 shares. The stock had previously closed at $38.21.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on the stock. JMP Securities upped their price objective on shares of GDS from $40.00 to $50.00 and gave the company a "market outperform" rating in a research note on Thursday, August 21st. BMO Capital Markets upgraded GDS to a "market perform" rating in a report on Wednesday, July 16th. Zacks Research lowered GDS from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 26th. Daiwa Capital Markets reaffirmed a "buy" rating on shares of GDS in a research note on Wednesday, May 28th. Finally, Bank of America raised their target price on GDS from $47.60 to $50.60 and gave the stock a "buy" rating in a research note on Friday, August 22nd. Two research analysts have rated the stock with a Strong Buy rating, six have given a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, GDS currently has an average rating of "Moderate Buy" and a consensus price target of $46.93.

GDS Price Performance

The firm has a market cap of $7.42 billion, a price-to-earnings ratio of 11.53 and a beta of 0.34. The business has a 50 day simple moving average of $35.34 and a 200-day simple moving average of $30.03. The company has a debt-to-equity ratio of 1.71, a quick ratio of 2.00 and a current ratio of 2.00.

Hedge Funds Weigh In On GDS

Large investors have recently bought and sold shares of the stock. Canada Pension Plan Investment Board lifted its position in shares of GDS by 77.7% during the second quarter. Canada Pension Plan Investment Board now owns 7,004,083 shares of the company's stock valued at $214,115,000 after purchasing an additional 3,062,658 shares in the last quarter. Aspex Management HK Ltd boosted its holdings in GDS by 46.4% during the second quarter. Aspex Management HK Ltd now owns 4,406,949 shares of the company's stock worth $134,720,000 after purchasing an additional 1,397,073 shares during the last quarter. Light Street Capital Management LLC purchased a new position in shares of GDS in the 2nd quarter worth approximately $21,845,000. Norges Bank bought a new position in shares of GDS in the second quarter valued at approximately $18,342,000. Finally, MY.Alpha Management HK Advisors Ltd bought a new stake in GDS during the second quarter worth $14,273,000. 33.71% of the stock is currently 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.