Galaxy Digital (NASDAQ:GLXY) Stock Falls 10.6% – Here’s Why

Galaxy Digital Inc. (NASDAQ:GLXY)’s share price dropped 10.6% during trading on Friday. The company traded as low as $16.37 and last traded at $16.3090. Approximately 4,813,409 shares were traded during trading, a decline of 23% from the average daily volume of 6,286,573 shares. The stock had previously closed at $18.25.

Analyst Ratings Changes

Several equities analysts have recently weighed in on GLXY shares. Rosenblatt Securities decreased their target price on Galaxy Digital from $39.00 to $35.00 and set a “buy” rating on the stock in a research report on Monday, August 3rd. Morgan Stanley dropped their price target on Galaxy Digital from $48.00 to $43.00 and set an “overweight” rating for the company in a research report on Friday, October 9th. Piper Sandler dropped their price target on Galaxy Digital from $36.00 to $33.00 and set an “overweight” rating for the company in a research report on Friday, July 17th. Chardan Capital reissued a “buy” rating and issued a $35.00 price objective on shares of Galaxy Digital in a research note on Wednesday, August 5th. Finally, Citigroup upgraded Galaxy Digital from a “neutral” rating to a “buy” rating and raised their price objective for the company from $26.00 to $28.00 in a report on Tuesday. Eleven equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Galaxy Digital currently has an average rating of “Moderate Buy” and an average price target of $39.33.

Galaxy Digital Stock Performance

The company has a market cap of $6.31 billion, a price-to-earnings ratio of -24.83 and a beta of 5.11. The company has a current ratio of 1.50, a quick ratio of 1.50 and a debt-to-equity ratio of 1.04. The stock’s fifty day simple moving average is $22.90 and its 200 day simple moving average is $24.99.

Galaxy Digital (NASDAQ:GLXY) last released its earnings results on Wednesday, August 5th. The company reported ($0.09) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.36) by $0.27. The business had revenue of $8.71 billion for the quarter. Galaxy Digital had a negative net margin of 0.75% and a negative return on equity of 6.25%. During the same period last year, the business earned $0.08 earnings per share. As a group, analysts anticipate that Galaxy Digital Inc. will post -0.71 earnings per share for the current year.

Insider Activity at Galaxy Digital

In related news, Director Douglas R. Deason acquired 12,000 shares of the stock in a transaction on Wednesday, August 12th. The shares were bought at an average price of $21.54 per share, with a total value of $258,480.00. Following the completion of the purchase, the director owned 71,000 shares of the company’s stock, valued at approximately $1,529,340. This represents a 20.34% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Matthew W. Friedrich sold 4,993 shares of the business’s stock in a transaction on Wednesday, September 9th. The stock was sold at an average price of $27.03, for a total value of $134,960.79. Following the transaction, the insider directly owned 275,782 shares in the company, valued at $7,454,387.46. This trade represents a 1.78% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 51.53% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Vontobel Holding Ltd. raised its stake in Galaxy Digital by 13.9% during the third quarter. Vontobel Holding Ltd. now owns 46,143 shares of the company’s stock worth $1,049,000 after purchasing an additional 5,637 shares during the period. Pension & Wealth Management Advisors Inc. boosted its holdings in Galaxy Digital by 37.4% in the 3rd quarter. Pension & Wealth Management Advisors Inc. now owns 11,874 shares of the company’s stock valued at $270,000 after purchasing an additional 3,231 shares during the last quarter. Sullivan Wood Capital Management LLC boosted its holdings in Galaxy Digital by 4.0% in the 3rd quarter. Sullivan Wood Capital Management LLC now owns 1,460,546 shares of the company’s stock valued at $33,213,000 after purchasing an additional 55,804 shares during the last quarter. GAMMA Investing LLC grew its stake in shares of Galaxy Digital by 1,160.8% in the 3rd quarter. GAMMA Investing LLC now owns 2,345 shares of the company’s stock valued at $53,000 after buying an additional 2,159 shares during the period. Finally, CoreCap Advisors LLC grew its stake in shares of Galaxy Digital by 496.0% in the 3rd quarter. CoreCap Advisors LLC now owns 2,211 shares of the company’s stock valued at $50,000 after buying an additional 1,840 shares during the period.

About Galaxy Digital

Galaxy Digital (NASDAQ: GLXY) is a financial services and investment management company focused on digital assets, blockchain technology and related infrastructure. Founded in 2018 by Michael Novogratz, the company provides institutional clients with access to the digital asset ecosystem through trading, investment banking, asset management and principal investing activities.

Its services include spot and derivatives trading, lending and structured products, market making, capital raising and strategic advisory services for companies in the digital asset and blockchain sectors.