GDS (NASDAQ:GDS) Shares Down 5.5% - Should You Sell?

Key Points

• GDS shares fell 5.5% to about $28.17 in mid-day trading, with trading volume down 88% from the daily average. The stock is also below its 50-day and 200-day moving averages.
• Analyst sentiment remains generally positive, with a consensus rating of “Moderate Buy” and an average price target of $48.12; Raymond James set a $51 target.
• GDS reported $454.5 million in quarterly revenue and $0.52 in earnings per share, while institutional investors own 33.71% of the company and several funds recently increased their positions.

Shares of GDS Holdings (NASDAQ:GDS - Get Free Report) traded down 5.5% during mid-day trading on Friday. The company traded as low as $27.97 and last traded at $28.1650. Approximately 255,591 shares traded hands during mid-day trading, a decline of 88% from the average daily volume of 2,046,337 shares. The stock had previously closed at $29.80.

Wall Street Analysts Forecast Growth

Several analysts have commented on the stock. Wall Street Zen upgraded shares of GDS from a "sell" rating to a "hold" rating in a research report on Sunday, September 6th. Zacks Research lowered GDS from a "strong-buy" rating to a "hold" rating in a research report on Friday, July 24th. Raymond James Financial reaffirmed a "strong-buy" rating and set a $51.00 price objective on shares of GDS in a research note on Tuesday, September 1st. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of GDS in a report 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 company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $48.12.

GDS Stock Down 6.5%

The company has a market capitalization of $5.58 billion, a P/E ratio of 12.94 and a beta of 0.42. The company has a quick ratio of 1.78, a current ratio of 1.78 and a debt-to-equity ratio of 1.22. The firm has a fifty day simple moving average of $32.18 and a 200-day simple moving average of $35.75.

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Tidal Investments LLC increased its position in shares of GDS by 264.8% during the second quarter. Tidal Investments LLC now owns 88,097 shares of the company's stock worth $2,646,000 after acquiring an additional 63,945 shares in the last quarter. BlueCrest Capital Management Ltd bought a new stake in GDS in the 2nd quarter valued at $7,508,000. Engineers Gate Manager LP acquired a new position in GDS in the 2nd quarter worth $1,458,000. Carrhae Capital LLP boosted its stake in GDS by 51.1% in the 2nd quarter. Carrhae Capital LLP now owns 3,300,419 shares of the company's stock worth $99,112,000 after purchasing an additional 1,115,757 shares during the period. Finally, Nykredit A S bought a new position in GDS during the 2nd quarter worth about $63,000. Institutional investors and hedge funds own 33.71% of the company's stock.

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, telecommunications carriers and multinational corporations.

Its services include wholesale and retail colocation, managed data center services, interconnection and cloud connectivity. GDS designs, builds and operates facilities intended to support customers' critical information technology infrastructure, including cloud computing, data storage and other high-performance computing requirements.

Founded in 2001, GDS has historically focused on serving customers in China through data centers in major economic and technology centers.

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