GDS (NASDAQ:GDS) Trading Down 4.9% - Should You Sell?

Key Points

• GDS Holdings' shares fell 4.9% to $37.81, with trading volume decreasing by 58% compared to the average session volume.
• Analysts have mixed ratings on GDS, with two noting a Strong Buy rating, while the average consensus target price is $46.93.
• Institutional investors hold 33.71% of GDS, with notable hedge funds significantly increasing their stakes in the company recently.

Shares of GDS Holdings (NASDAQ:GDS - Get Free Report) traded down 4.9% during trading on Tuesday . The stock traded as low as $37.81 and last traded at $37.81. 1,161,291 shares traded hands during mid-day trading, a decline of 58% from the average session volume of 2,795,930 shares. The stock had previously closed at $39.76.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on GDS. JPMorgan Chase & Co. upgraded shares of GDS from a "neutral" rating to an "overweight" rating and lifted their target price for the stock from $34.00 to $46.00 in a research note on Wednesday, July 16th. Zacks Research cut shares of GDS from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 26th. JMP Securities increased their price target on shares of GDS from $40.00 to $50.00 and gave the stock a "market outperform" rating in a research report on Thursday, August 21st. Daiwa Capital Markets restated a "buy" rating on shares of GDS in a research report on Wednesday, May 28th. Finally, BMO Capital Markets upgraded shares of GDS to a "market perform" rating in a research report on Wednesday, July 16th. Two investment analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, GDS has an average rating of "Moderate Buy" and a consensus target price of $46.93.

GDS Price Performance

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 stock has a 50 day moving average of $35.43 and a two-hundred day moving average of $29.93. The firm has a market capitalization of $7.17 billion, a P/E ratio of 11.13 and a beta of 0.34.

Hedge Funds Weigh In On GDS

A number of hedge funds have recently added to or reduced their stakes in the stock. Canada Pension Plan Investment Board lifted its holdings in GDS by 77.7% during the 2nd quarter. Canada Pension Plan Investment Board now owns 7,004,083 shares of the company's stock worth $214,115,000 after buying an additional 3,062,658 shares during the period. Tekne Capital Management LLC lifted its position in shares of GDS by 6.9% during the second quarter. Tekne Capital Management LLC now owns 6,263,467 shares of the company's stock worth $191,474,000 after acquiring an additional 403,256 shares in the last quarter. Aspex Management HK Ltd raised its position in shares of GDS by 46.4% in the second quarter. Aspex Management HK Ltd now owns 4,406,949 shares of the company's stock worth $134,720,000 after buying an additional 1,397,073 shares in the last quarter. Bamco Inc. NY increased its stake in GDS by 2.8% in the second quarter. Bamco Inc. NY now owns 3,153,908 shares of the company's stock valued at $96,415,000 after acquiring an additional 86,503 shares during the last quarter. Finally, Massachusetts Financial Services Co. MA grew its stake in shares of GDS by 0.9% during the first quarter. Massachusetts Financial Services Co. MA now owns 1,177,503 shares of the company's stock valued at $29,826,000 after buying an additional 10,838 shares during the last quarter. Institutional investors own 33.71% of the company's stock.

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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