GDS stock: buy or sell?

GDS stock price: $57.97 -0.74% At close on March 31st, 2020

Updated on:
March 31st, 2020

3

GDS shares declined -0.74% to $57.97 today. On Wednesday GDS skyrocketed an outstanding 6.19%.

GDS Holdings Limited, together with its subsidiaries, designs, builds, and operates data centers in the People's Republic of China.

Should I buy GDS stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best time to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, GDS stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean GDS will fall in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is GDS stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. Unfortunately, we couldn't detect any rating for GDS stock for the last month.

GDS stock analysis

Daily outlook

GDS closed today at $57.97 and declined an ugly -0.74%.

GDS shares declined -0.74% to $57.97 today. In the last 7 days when GDS stock price broke up the SMA100d line, it gained $7.82 (15.59%). On March/5, GDS hit new all time highs, pushing higher previous ATH of $64.34 recorded on Mar/4. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

GDS stock chart (daily)

Weekly outlook

After boosting an amazing 7.70% in a week last week, GDS closed this week at $57.97 and soared an excellent 3.98%. Early March GDS plummed a bloodcurdling -14.13% in just one week.

Not so far away is the last all-time high GDS marked early March. Since late April 2019 when SMA20w and SMA40w crossed up, GDS price gained $18.87 per share (48.26%). Last week GDS price bounced up over the SMA of 20 weeks that acted as support stopping new slides.

GDS stock chart (weekly)

GDS stock price history

GDS IPO was on November 2nd, 2016 at $10.00 per share1. Since then, GDS stock surged a 479.70%, with a yearly average of 159.90%. If you had invested $1,000 in GDS stock in 2016, it would worth $4,797.00 today.

1: Adjusted price after possible price splits or reverse-splits.

GDS stock historical price chart

GDS stock reached all-time highs on March/5 with a price of $65.34.

GDS stock price target

Nobody can reliably foresee how stock prices may evolve in the future. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last 30 days we have not found any price target for GDS stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

, GDS presented its financial report, posting an extraordinary growth for the Earnings per Share (EPS). Experts expected $-0.11 per share, but GDS posted $-0.14.
GDS earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a-0.06n/a
2017-Q2-n/a-0.1n/a
2017-Q3-n/a-0.12n/a
2017-Q42018-03-13-0.13-0.17n/a
2018-Q12018-05-10n/a-0.08n/a
2018-Q22018-08-14-0.11-0.12n/a
2018-Q32018-11-13-0.11-0.14n/a
2018-Q42019-03-13-0.11-0.14n/a
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

Compared to 2017, last anual turnover report draw a super good increase of 72.76% to $2,792.08 M USD. However, its earnings margin (compared to revenues) stepped up to -15.41%, that is $-430.27 million.

GDS annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2014$468 M-$-130.00 M-27.8%-
2015$704 M50.24%$-98.58 M-14.0%-24.17%
2016$1,056 M50.07%$-276.41 M-26.2%180.38%
2017$1,616 M53.05%$-326.90 M-20.2%18.27%
2018$2,792 M72.76%$-430.27 M-15.4%31.62%

Quarterly financial results

GDS posted $829.52 M in sales for 2018-Q4, a 8.74% improvement compared to previous quarter. Reported quarter earnings marked $-122.91 M with a profit margin of -14.82%. Profit margin stayed constant a 0.83% compared to previous quarter when profit margin was -15.65%. When comparing revenues to same quarter last year, GDS sales marked an amazing growth and boosted a 64.11%. Looking back to recent quarterly results, GDS posted 6 positive quarters in a row.
GDS quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$51 M-$-6.44 M-12.7%-
2017-Q2$49 M-3.69%$-11.04 M-22.5%71.43%
2017-Q3$64 M30.18%$-13.58 M-21.3%22.97%
2017-Q4$505 M692.40%$-116.54 M-23.1%758.45%
2018-Q1$562 M11.23%$-85.93 M-15.3%-26.27%
2018-Q2$638 M13.39%$-102.08 M-16.0%18.80%
2018-Q3$763 M19.66%$-119.35 M-15.6%16.93%
2018-Q4$830 M8.74%$-122.91 M-14.8%2.98%

GDS ownership

When you are planning to invest in a company, it's always worth to overview its ownership structure.

GDS shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 72.75% of all shares.

In case of GDS stock, 0.00% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for GDS stock account 0.00%, no big difference from last month.

For a better context understanding, the next table shows ownership data compared to other related companies:

GDS
Market cap$8.8 B
Total shares152.1 M
Float shares74.2 M
  - Institutional holdings (%)0.0%
  - Insider holdings (%)72.8%
Shares in short selling0.0%

GDS summary

Tuesday, March 31st, 2020
Open$58.40
Close$57.97
Day range$57.17 - $59.16
Previous close$58.40
Session gain-0.74%
Average true range$5.03
50d mov avg$56.37
100d mov avg$52.55
200d mov avg$46.27
Daily patternlt02a
Weekly pattern

GDS performance

To measure stock performance is always good to compare with competitors or related stocks. We compared GDS against in the following table:
Stock3m6m12m
GDS 7.97%40.26%49.68%

GDS competitors

Unfortunately, we could not find any public company that could be defined as GDS competitor. This doesn't mean GDS does not have any competitor in the market, it's just we could not detected it.