GDS (NASDAQ:GDS) Reaches New 1-Year Low - Here's What Happened

Key Points

• GDS shares hit a new 52-week low, trading as low as $21.02 and last at $20.71, down 8.9% from the prior close of $23.37.
• Despite the drop, analysts’ consensus rating was “Moderate Buy,” with a consensus price target of $48.12; ratings ranged from Strong Buy to Hold.
• Institutional investors and hedge funds owned 33.71% of GDS shares, with several firms recently initiating or increasing positions.

GDS Holdings (NASDAQ:GDS - Get Free Report) shares hit a new 52-week low during trading on Thursday. The stock traded as low as $21.02 and last traded at $20.71, with a volume of 1,013,705 shares changing hands. The stock had previously closed at $23.37.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on GDS shares. Raymond James Financial reissued a "strong-buy" rating and issued a $51.00 price target on shares of GDS in a research note on Tuesday, September 1st. Wall Street Zen upgraded GDS from a "sell" rating to a "hold" rating in a report on Sunday, October 18th. Zacks Research lowered GDS from a "strong-buy" rating to a "hold" rating in a research report on Friday, July 24th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of GDS in a research note on Thursday, August 13th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $48.12.

GDS Trading Down 8.9%

The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.78 and a current ratio of 1.78. The stock has a market capitalization of $4.27 billion, a PE ratio of 9.91 and a beta of 0.47. The business's 50-day moving average is $28.78 and its two-hundred day moving average is $36.08.

GDS (NASDAQ:GDS - Get Free Report) last released its earnings results on Tuesday, June 30th. The company reported $0.52 EPS for the quarter. The company had revenue of $454.51 million during the quarter. GDS had a net margin of 30.70% and a return on equity of 17.94%. As a group, equities research analysts anticipate that GDS Holdings will post 2.23 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Irenic Capital Management LP acquired a new stake in GDS in the 2nd quarter valued at about $8,498,000. BlueCrest Capital Management Ltd acquired a new position in GDS in the 2nd quarter valued at $7,508,000. Barometer Capital Management Inc. lifted its position in GDS by 2,338.5% during the first quarter. Barometer Capital Management Inc. now owns 158,500 shares of the company's stock worth $6,386,000 after buying an additional 152,000 shares during the period. Bank of America Corp DE lifted its holdings in shares of GDS by 25.5% during the 1st quarter. Bank of America Corp DE now owns 2,177,301 shares of the company's stock worth $87,723,000 after acquiring an additional 442,414 shares during the period. Finally, The Manufacturers Life Insurance Company purchased a new stake in GDS in the first quarter valued at approximately $11,988,000. 33.71% of the stock is currently owned by institutional investors and hedge funds.

GDS Company Profile

GDS Holdings Limited NASDAQ: GDS is a developer and operator of data centers. The company provides data center infrastructure and related services to cloud service providers, internet companies, financial institutions and other enterprises that require secure, scalable and highly connected computing facilities.

Its services include colocation, managed hosting, cloud connectivity, network services, disaster recovery and other data center solutions. GDS operates carrier-neutral facilities designed to support customers' mission-critical information technology systems and connect them with telecommunications carriers, cloud platforms and internet exchanges.

Founded in 2001 and headquartered in Shanghai, GDS has built its primary presence in China and has expanded internationally through its GDS International business, with operations and development activities in selected markets across Southeast Asia.

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