GDS (NASDAQ:GDS) Sets New 52-Week Low - Here's What Happened

Key Points

• GDS Holdings shares fell 5.8% to a new 52-week low of $21.95, compared with a prior close of $23.57. The stock’s 50-day and 200-day moving averages were $30.93 and $34.29, respectively.
• Analyst sentiment remains generally positive but has weakened, with recent rating changes to “hold.” GDS has a consensus “Moderate Buy” rating and an average price target of $48.12.
• Institutional investors have continued building positions, including Carrhae Capital, Bank of America, HSBC and Electron Capital. Hedge funds and other institutions collectively own 33.71% of GDS shares.

Shares of GDS Holdings (NASDAQ:GDS - Get Free Report) hit a new 52-week low on Thursday. The stock traded as low as $21.95 and last traded at $22.6530, with a volume of 243,062 shares. The stock had previously closed at $23.57.

Analyst Upgrades and Downgrades

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

GDS Stock Down 5.8%

The firm has a market capitalization of $4.45 billion, a price-to-earnings ratio of 10.36 and a beta of 0.42. The company has a current ratio of 1.78, a quick ratio of 1.78 and a debt-to-equity ratio of 1.22. The firm has a 50 day moving average price of $30.93 and a two-hundred day moving average price of $34.29.

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

Institutional Investors Weigh In On GDS

Institutional investors have recently bought and sold shares of the business. Carrhae Capital LLP increased its position in shares of GDS by 51.1% in the second quarter. Carrhae Capital LLP now owns 3,300,419 shares of the company's stock worth $99,112,000 after acquiring an additional 1,115,757 shares in the last quarter. 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 valued at $87,723,000 after acquiring an additional 442,414 shares in the last quarter. WCM Investment Management LLC acquired a new position in shares of GDS during the 1st quarter valued at $68,092,000. Hsbc Holdings PLC boosted its position in GDS by 294.4% during the 1st quarter. Hsbc Holdings PLC now owns 1,220,693 shares of the company's stock worth $48,746,000 after purchasing an additional 911,191 shares during the period. Finally, Electron Capital Partners LLC boosted its position in GDS by 640.6% during the 1st quarter. Electron Capital Partners LLC now owns 780,979 shares of the company's stock worth $31,466,000 after purchasing an additional 675,531 shares during the period. 33.71% of the stock is currently owned by hedge funds and other institutional investors.

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.

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