GDS (NASDAQ:GDS) Sets New 1-Year Low - Should You Sell?

Key Points

• GDS shares fell 5.8% to a new 52-week low, reaching $21.66 before closing at $22.26, well below its 50-day and 200-day moving averages.
• Analyst sentiment remains cautiously positive: GDS has a consensus “Moderate Buy” rating and a $48.12 target price, though several firms recently downgraded or maintained “Hold” ratings.
• The company reported $454.51 million in quarterly revenue and $0.52 in EPS, while institutional investors own 33.71% of the stock and some hedge funds recently increased their positions.

Shares of GDS Holdings (NASDAQ:GDS - Get Free Report) reached a new 52-week low during trading on Friday. The company traded as low as $21.66 and last traded at $22.26, with a volume of 91,920 shares traded. The stock had previously closed at $23.16.

Analyst Ratings Changes

A number of brokerages have issued reports on GDS. Wall Street Zen raised GDS from a "sell" rating to a "hold" rating in a research note on Sunday, October 18th. Zacks Research downgraded shares of GDS from a "strong-buy" rating to a "hold" rating in a research note on Friday, July 24th. Raymond James Financial reiterated a "strong-buy" rating and set a $51.00 price target on shares of GDS in a report on Tuesday, September 1st. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of GDS in a research note on Thursday, August 13th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, GDS currently has a consensus rating of "Moderate Buy" and a consensus target price of $48.12.

GDS Trading Down 5.8%

The company has a 50 day moving average of $29.61 and a 200 day moving average of $36.51. The firm has a market cap of $4.37 billion, a P/E ratio of 10.22 and a beta of 0.42. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.78 and a current ratio of 1.78.

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

Institutional Inflows and Outflows

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

About GDS

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.