RBC Capital Mkts slashes price target on GDS Holdings Limited [GDS] – find out why.

GDS Holdings Limited [NASDAQ: GDS] surged by $2.96 during the normal trading session on Thursday and reaching a high of $20.8599 during the day while it closed the day at $20.51. The company report on December 1, 2022 that GDS Releases 2021 ESG Report.

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GDS Holdings Limited stock has also gained 37.93% of its value over the past 7 days. However, GDS stock has declined by -12.01% in the 3 months of the year. Over the past six months meanwhile, it has lost -34.68% and lost -56.51% year-on date.

The market cap for GDS stock reached $3.43 billion, with 183.32 million shares outstanding and 178.45 million shares in the current float. Compared to the average trading volume of 1.83M shares, GDS reached a trading volume of 2463350 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about GDS Holdings Limited [GDS]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for GDS shares is $26.13 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on GDS stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

RBC Capital Mkts have made an estimate for GDS Holdings Limited shares, keeping their opinion on the stock as Sector Perform, with their previous recommendation back on August 26, 2022. The new note on the price target was released on August 25, 2022, representing the official price target for GDS Holdings Limited stock. Previously, the target price had yet another raise to $32.80, while Deutsche Bank analysts kept a Hold rating on GDS stock.

The Average True Range (ATR) for GDS Holdings Limited is set at 1.92, with the Price to Sales ratio for GDS stock in the period of the last 12 months amounting to 2.65. The Price to Book ratio for the last quarter was 1.15, with the Price to Cash per share for the same quarter was set at 7.72.

GDS stock trade performance evaluation

GDS Holdings Limited [GDS] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 37.93. With this latest performance, GDS shares gained by 96.27% in over the last four-week period, additionally sinking by -34.68% over the last 6 months – not to mention a drop of -62.19% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for GDS stock in for the last two-week period is set at 67.62, with the RSI for the last a single of trading hit 73.78, and the three-weeks RSI is set at 62.50 for GDS Holdings Limited [GDS]. The present Moving Average for the last 50 days of trading for this stock 14.00, while it was recorded at 18.26 for the last single week of trading, and 26.37 for the last 200 days.

GDS Holdings Limited [GDS]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and GDS Holdings Limited [GDS] shares currently have an operating margin of +7.28 and a Gross Margin at +21.03. GDS Holdings Limited’s Net Margin is presently recorded at -16.18.

Return on Total Capital for GDS is now 0.99, given the latest momentum, and Return on Invested Capital for the company is -2.41. Return on Equity for this stock declined to -4.87, with Return on Assets sitting at -1.96. When it comes to the capital structure of this company, GDS Holdings Limited [GDS] has a Total Debt to Total Equity ratio set at 148.69. Additionally, GDS Total Debt to Total Capital is recorded at 59.79, with Total Debt to Total Assets ending up at 52.79. Long-Term Debt to Equity for the company is recorded at 126.66, with the Long-Term Debt to Total Capital now at 49.01.

Receivables Turnover for the company is 4.34 with a Total Asset Turnover recorded at a value of 0.12.GDS Holdings Limited’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.10 and a Current Ratio set at 1.10.

Earnings per share (EPS) analysis for GDS Holdings Limited [GDS] stock

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for GDS. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for GDS Holdings Limited go to 0.51%.

GDS Holdings Limited [GDS]: Insider Ownership positions

There are presently around $1,457 million, or 42.00% of GDS stock, in the hands of institutional investors. The top three institutional holders of GDS stocks are: SINGAPORE TECHNOLOGIES TELEMEDIA PTE LTD with ownership of 15,835,680, which is approximately 0% of the company’s market cap and around 1.12% of the total institutional ownership; CANADA PENSION PLAN INVESTMENT BOARD, holding 8,531,570 shares of the stock with an approximate value of $174.98 million in GDS stocks shares; and ASPEX MANAGEMENT (HK) LTD, currently with $165.97 million in GDS stock with ownership of nearly 0.497% of the company’s market capitalization.

Positions in GDS Holdings Limited stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 51 institutional holders increased their position in GDS Holdings Limited [NASDAQ:GDS] by around 2,646,496 shares. Additionally, 116 investors decreased positions by around 13,112,946 shares, while 20 investors held positions by with 55,296,081 shares. The mentioned changes placed institutional holdings at 71,055,523 shares, according to the latest SEC report filing. GDS stock had 16 new institutional investments in for a total of 551,115 shares, while 54 institutional investors sold positions of 5,322,257 shares during the same period.


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