Investing in GDS Holdings Limited ADR (GDS) might be an excellent idea, but the stock is currently overvalued/undervalued

Within its last year performance, GDS rose by 43.67%, with highs and lows ranging from $18.14 to $5.01, whereas the simple moving average jumped by 76.73% in the last 200 days.

On July 08, 2024, RBC Capital Mkts Upgraded GDS Holdings Limited ADR (NASDAQ: GDS) to Outperform. HSBC Securities also rated GDS shares as ‘Buy’, setting a target price of $13.60 on the company’s shares in an initiating report dated June 12, 2023. RBC Capital Mkts August 26, 2022d its ‘Outperform’ rating to ‘Sector Perform’ for GDS, as published in its report on August 26, 2022. JP Morgan’s report from August 25, 2022 suggests a price prediction of $28 for GDS shares, giving the stock a ‘Neutral’ rating. Deutsche Bank also rated the stock as ‘Hold’.

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Analysis of GDS Holdings Limited ADR (GDS)

Further, the quarter-over-quarter increase in sales is 10.83%, showing a positive trend in the upcoming months.

One of the most important indicators of GDS Holdings Limited ADR’s future performance is equity, which can be evaluated using several well-rounded types of analysis and research techniques. The goal here is to ensure that your current return on equity of -19.58% is sufficient for you to turn a profit off your investment. Taking into account the quick ratio of the company, currently set at 1.39, you can see that the company can cover any debts it may have, which can easily be seen in the annual report of the company.

For any stock, average volume can also provide valuable insight into volatility, and GDS is recording 1.51M average volume. On a monthly basis, the volatility of the stock is set at 5.96%, whereas on a weekly basis, it is put at 3.46%, with a loss of -7.36% over the past seven days. Furthermore, long-term investors anticipate a median target price of $22.57, showing growth from the present price of $16.12, which can serve as yet another indication of whether GDS is worth investing in or should be passed over.

How Do You Analyze GDS Holdings Limited ADR Shares?

Along with the fundamentals, it is also important to consider how many employees own shares of the company. This is because the values should be in line with investors’ expectations. As such, the current holdings of company stock inside the company are set at 6.80%. This can enable you to see the extent to which executives own the company’s stock. As opposed to executive stock, institutional ownership accounts for 31.56% of the company’s shares, contributing to an indication of company value, since large shareholders may signify strength within the organization.

GDS shares are owned by institutional investors to the tune of 31.56% at present.

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