Array Digital Infrastructure (NYSE:AD) Trading Up 11.4% - Still a Buy?

Key Points

• Shares jumped 11.4% intraday to $54.94 (high $55.44) from a prior close of $49.30, on about 124,191 shares traded—roughly half its average daily volume.
• Array beat expectations with Q4 EPS of $0.48 vs. $0.30 and revenue of $60.33M (up 131% YoY); analysts have an average rating of Moderate Buy and an average target of $54.50, though several firms recently trimmed targets.
• Valuation and liquidity metrics show a market cap of $4.89B, a P/E of ~100.9, and a current ratio of 0.72, implying a high valuation and below‑1 short‑term liquidity.

Array Digital Infrastructure Inc. (NYSE:AD - Get Free Report)'s share price was up 11.4% during mid-day trading on Friday . The company traded as high as $55.44 and last traded at $54.94. Approximately 124,191 shares traded hands during mid-day trading, a decline of 50% from the average daily volume of 250,525 shares. The stock had previously closed at $49.30.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on AD shares. Wall Street Zen raised Array Digital Infrastructure from a "sell" rating to a "hold" rating in a research report on Sunday, March 8th. Citigroup dropped their target price on Array Digital Infrastructure from $63.00 to $57.00 and set a "buy" rating on the stock in a research report on Monday, February 23rd. Raymond James Financial set a $53.00 target price on Array Digital Infrastructure in a research report on Monday, February 23rd. Wells Fargo & Company dropped their target price on Array Digital Infrastructure from $62.00 to $54.00 and set an "overweight" rating on the stock in a research report on Thursday, February 12th. Finally, Weiss Ratings raised Array Digital Infrastructure from a "sell (d)" rating to a "hold (c)" rating in a research report on Monday, March 16th. Three investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $54.50.

Array Digital Infrastructure Price Performance

The company has a current ratio of 0.72, a quick ratio of 0.72 and a debt-to-equity ratio of 0.26. The company has a 50 day moving average price of $48.21 and a 200 day moving average price of $49.52. The company has a market capitalization of $4.89 billion, a P/E ratio of 100.87 and a beta of 0.23.

Array Digital Infrastructure (NYSE:AD - Get Free Report) last issued its earnings results on Friday, February 20th. The company reported $0.48 EPS for the quarter, topping the consensus estimate of $0.30 by $0.18. Array Digital Infrastructure had a return on equity of 4.89% and a net margin of 2.51%.The company had revenue of $60.33 million during the quarter. The company's quarterly revenue was up 131.2% on a year-over-year basis. On average, equities analysts predict that Array Digital Infrastructure Inc. will post 5.01 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in AD. Royal Bank of Canada bought a new position in shares of Array Digital Infrastructure during the 4th quarter worth approximately $25,000. Quadrant Capital Group LLC bought a new position in shares of Array Digital Infrastructure during the 4th quarter worth approximately $48,000. Empowered Funds LLC bought a new position in shares of Array Digital Infrastructure during the 4th quarter worth approximately $54,000. Harbour Investments Inc. bought a new stake in Array Digital Infrastructure in the 4th quarter valued at $61,000. Finally, Signaturefd LLC bought a new stake in Array Digital Infrastructure in the 4th quarter valued at $73,000. 18.03% of the stock is currently owned by institutional investors.

Array Digital Infrastructure Company Profile

United States Cellular Corporation provides wireless telecommunications services in the United States. The company offers wireless services, including voice, messaging, and data services. It also provides devices, such as smartphones and other handsets, tablets, wearables, mobile hotspots, routers, and internet of things devices. In addition, the company offers various accessories, such as cases, screen protectors, chargers, and memory cards; and consumer electronics, including audio, home automation, and networking products; as well as offers option to purchase devices and accessories under installment contracts.

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