GDS (NASDAQ:GDS) Stock Price Down 8.9% - What's Next?

Key Points

• GDS Holdings shares fell 8.9% to approximately $26.95, with trading volume about 80% below the average session volume.
• Analyst sentiment remains generally positive, with a consensus rating of “Moderate Buy” and an average price target of $48.12, despite some recent downgrades to hold and sell.
• The company reported quarterly earnings of $0.52 per share on $454.51 million in revenue, while institutional investors own approximately 33.71% of its stock.

GDS Holdings (NASDAQ:GDS - Get Free Report) fell 8.9% during trading on Wednesday. The stock traded as low as $27.47 and last traded at $26.9510. 420,699 shares traded hands during mid-day trading, a decline of 80% from the average session volume of 2,071,590 shares. The stock had previously closed at $29.60.

Key GDS News

Here are the key news stories impacting GDS this week:

• Neutral Sentiment: Most of the coverage concerns India Post’s Gramin Dak Sevak (GDS) recruitment process, including the first merit list for 23,757 positions, state-level cutoffs and document-verification deadlines. This is unrelated to GDS Holdings, the China-based data-center operator. India Post GDS Merit List 2026
• Neutral Sentiment: Additional reports repeat the India Post merit-list results, cutoff ranges and verification process; they should not be interpreted as news about GDS Holdings or its operating performance. India Post GDS Selection Status and Verification
• Neutral Sentiment: A separate article reports that GDS Associates appointed Gary Cooley as chief financial officer. GDS Associates is a different company and the appointment has no apparent connection to GDS Holdings. GDS Associates Appoints CFO

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on GDS shares. Zacks Research lowered shares of GDS from a "strong-buy" rating to a "hold" rating in a report on Friday, July 24th. Raymond James Financial reaffirmed a "strong-buy" rating and issued a $51.00 price target on shares of GDS in a research report on Tuesday, September 1st. Wall Street Zen lowered GDS from a "hold" rating to a "sell" rating in a research note on Saturday. Finally, Weiss Ratings restated 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 assigned a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, GDS has an average rating of "Moderate Buy" and a consensus target price of $48.12.

GDS Trading Down 14.1%

The company's 50 day simple moving average is $31.92 and its 200-day simple moving average is $34.99. 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 market cap of $5.10 billion, a P/E ratio of 11.87 and a beta of 0.42.

GDS (NASDAQ:GDS - Get Free Report) last released its quarterly earnings results on Tuesday, June 30th. The company reported $0.52 earnings per share for the quarter. The company 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%. As a group, research analysts predict that GDS Holdings will post 2.23 earnings per share for the current fiscal year.

Hedge Funds Weigh In On GDS

Several institutional investors have recently added to or reduced their stakes in the stock. Summit Securities Group LLC acquired a new stake in shares of GDS in the first quarter valued at about $65,000. Nykredit A S acquired a new position in shares of GDS during the second quarter valued at $63,000. EverSource Wealth Advisors LLC lifted its holdings in shares of GDS by 73.5% in the first quarter. EverSource Wealth Advisors LLC now owns 2,160 shares of the company's stock valued at $87,000 after buying an additional 915 shares during the period. SG Americas Securities LLC acquired a new stake in GDS during the 1st quarter worth about $132,000. Finally, PNC Financial Services Group Inc. lifted its position in GDS by 8.4% in the 1st quarter. PNC Financial Services Group Inc. now owns 3,904 shares of the company's stock worth $157,000 after buying an additional 303 shares in the last quarter. 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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