GDS (NASDAQ:GDS) Shares Gap Up – Here’s Why

Shares of GDS Holdings (NASDAQ:GDS) gapped up before the market opened on Friday . The stock had previously closed at $34.90, but opened at $36.50. GDS shares last traded at $37.6450, with a volume of 511,980 shares traded.

Analyst Upgrades and Downgrades

GDS has been the subject of a number of research reports. Weiss Ratings reiterated a “hold (c)” rating on shares of GDS in a report on Monday. Macquarie set a $46.70 price objective on GDS in a research report on Thursday, November 6th. Raymond James Financial reiterated a “strong-buy” rating on shares of GDS in a report on Monday, December 1st. TD Cowen cut their target price on GDS from $38.00 to $37.00 and set a “buy” rating on the stock in a research note on Thursday, November 20th. Finally, UBS Group set a $55.00 price target on shares of GDS in a research note on Monday, December 1st. Two analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat.com, GDS has a consensus rating of “Moderate Buy” and an average target price of $46.70.

GDS Stock Up 7.8%

The firm has a fifty day moving average of $34.07 and a 200-day moving average of $34.49. The company has a quick ratio of 2.51, a current ratio of 2.51 and a debt-to-equity ratio of 1.65. The firm has a market cap of $7.17 billion, a P/E ratio of 9.45 and a beta of 0.34.

GDS (NASDAQ:GDS) last posted its quarterly earnings results on Wednesday, November 19th. The company reported $0.45 earnings per share for the quarter, topping the consensus estimate of ($0.06) by $0.51. The firm had revenue of $405.28 million for the quarter, compared to analyst estimates of $402.81 million. GDS had a return on equity of 5.17% and a net margin of 49.60%.The business’s quarterly revenue was up 10.2% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.14) EPS. On average, equities research analysts anticipate that GDS Holdings will post -0.89 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of GDS. Canada Pension Plan Investment Board raised its stake in GDS by 77.7% in the second quarter. Canada Pension Plan Investment Board now owns 7,004,083 shares of the company’s stock valued at $214,115,000 after buying an additional 3,062,658 shares during the period. Tekne Capital Management LLC lifted its holdings in GDS by 6.9% during the 2nd quarter. Tekne Capital Management LLC now owns 6,263,467 shares of the company’s stock valued at $191,474,000 after purchasing an additional 403,256 shares during the last quarter. Aspex Management HK Ltd boosted its position in GDS by 46.4% during the second quarter. Aspex Management HK Ltd now owns 4,406,949 shares of the company’s stock worth $134,720,000 after purchasing an additional 1,397,073 shares during the period. Bamco Inc. NY increased its holdings in shares of GDS by 35.0% in the third quarter. Bamco Inc. NY now owns 4,258,664 shares of the company’s stock valued at $164,810,000 after purchasing an additional 1,104,756 shares during the last quarter. Finally, Triata Capital Ltd increased its holdings in shares of GDS by 35.5% in the third quarter. Triata Capital Ltd now owns 2,407,953 shares of the company’s stock valued at $93,188,000 after purchasing an additional 630,339 shares during the last quarter. 33.71% of the stock is currently owned by institutional investors and hedge funds.

GDS Company Profile

GDS Holdings Limited, founded in 2001 and headquartered in Shanghai, is a leading network-neutral data center services provider in China. The company operates a portfolio of state-of-the-art data center facilities designed to support the mission-critical IT infrastructure of cloud service providers, internet enterprises, financial institutions, and government entities. GDS was among the first Chinese providers to offer high-density colocation solutions, catering to customers with demanding computing and storage requirements.

GDS specializes in delivering scalable colocation, cross-connect, and interconnection services within its facilities, enabling clients to establish high-speed, low-latency connections to major cloud platforms and internet exchange points.