GDS (NASDAQ:GDS) Downgraded to 'Sell' by StockNews.com

GDS (NASDAQ:GDS) has recently faced a rating downgrade from StockNews.com, which changed its evaluation from "hold" to "sell" in a report published on Friday. This shift suggests that analysts are now less optimistic about the company's immediate market performance.

In addition to StockNews.com, other financial analysts have also updated their views on GDS. For instance, Royal Bank of Canada lowered its rating from "outperform" to "sector perform" but increased the target price for the company from $26.00 to $37.00 in a report issued on Tuesday. Meanwhile, Daiwa Capital Markets upgraded GDS from a "neutral" rating to a "buy" on the same day.

Furthermore, Citizens JMP rated GDS as a "strong buy" in a report released on January 27th, while Raymond James elevated their price target for GDS from $25.00 to $53.00, providing an "outperform" rating in their analysis on February 21st. Lastly, JMP Securities initiated coverage on the stock with an "outperform" rating and set a target price of $35.00 on January 27th.

Currently, GDS has received a mixed bag of ratings from analysts. One analyst has given the stock a "sell" rating, three maintain a "hold" rating, four suggest a "buy," and two have classified it as a "strong buy." According to MarketBeat data, the average rating for GDS is categorized as a "Moderate Buy," with an average target price of $33.23.

Recent Trading Activity

In trading on Friday, GDS shares experienced a slight increase of 0.3%, reaching a value of $38.05. A total of 3,236,634 GDS shares changed hands, which is close to the average trading volume of 3,332,316 shares. Current liquidity metrics indicate a current ratio of 1.19 and a quick ratio of 1.19. The company's debt-to-equity ratio stands at 2.25. Over the past year, GDS has fluctuated between a low of $5.85 and a high of $52.50. The company's market cap is approximately $7.25 billion, with a price-to-earnings ratio of -12.48.

Institutional Investment Update

There has been notable activity among institutional investors with respect to GDS. For instance, Alberta Investment Management Corp entered into a new investment in GDS valued at about $4.94 million during the fourth quarter. Similarly, JPMorgan Chase & Co. raised its stake in GDS by a staggering 7,553.4% during the third quarter, acquiring a total of 610,821 shares worth nearly $12.46 million after purchasing an additional 602,840 shares in the last quarter. Y Intercept Hong Kong Ltd also increased its holdings in GDS by 165.5% during the fourth quarter, now owning 54,127 shares valued at $1.29 million after acquiring an additional 33,741 shares.

In the third quarter, the Healthcare of Ontario Pension Plan Trust Fund initiated a new stake in GDS, valued at $27.21 million. Additionally, the State of New Jersey Common Pension Fund D acquired a new position in GDS valued at about $1.94 million during the fourth quarter. Overall, 33.71% of the stock is owned by institutional investors, reflecting significant interest from large financial entities.

About GDS Holdings Limited

GDS Holdings Limited, along with its subsidiaries, is engaged in the development and operation of data centers in the People’s Republic of China. The company provides various services including colocation facilities, managed hosting that comprises business continuity and recovery services, network management, data storage, as well as managed cloud services and consulting services.

GDS, Downgrade, Stocks