Galaxy Digital (NASDAQ:GLXY) Stock Sees Heavy Put Option Buying

Key Points

• Heavy bearish options activity: Traders purchased 32,920 put options on Galaxy Digital, about 23% above the average volume, signaling increased downside protection or bearish speculation.
• Shares rose but remain volatile: GLXY gained 6.5% to $18.30, while trading below its 50-day and 200-day moving averages. The stock has a beta of 5.11 and has ranged from $14.19 to $38.00 over the past year.
• Fundamentals and analyst outlook are mixed: Galaxy beat quarterly earnings expectations with $0.83 EPS and $8.69 billion in revenue, while analysts maintained a “Moderate Buy” consensus and a $35.29 average price target despite several target reductions.

Galaxy Digital Inc. (NASDAQ:GLXY - Get Free Report) was the recipient of unusually large options trading on Wednesday. Stock traders purchased 32,920 put options on the company. This represents an increase of approximately 23% compared to the average volume of 26,753 put options.

Galaxy Digital Stock Up 6.5%

Shares of GLXY traded up $1.12 during trading hours on Wednesday, reaching $18.30. 4,079,992 shares of the stock traded hands, compared to its average volume of 6,373,772. The stock has a fifty day simple moving average of $22.10 and a 200 day simple moving average of $24.33. The company has a current ratio of 1.50, a quick ratio of 1.50 and a debt-to-equity ratio of 1.04. Galaxy Digital has a 52 week low of $14.19 and a 52 week high of $38.00. The company has a market cap of $7.15 billion, a price-to-earnings ratio of -28.14 and a beta of 5.11.

Galaxy Digital (NASDAQ:GLXY - Get Free Report) last released its quarterly earnings results on Tuesday, October 27th. The company reported $0.83 earnings per share for the quarter, beating the consensus estimate of $0.29 by $0.54. Galaxy Digital had a negative return on equity of 6.25% and a negative net margin of 0.75%. The firm had revenue of $8.69 billion for the quarter. On average, equities analysts forecast that Galaxy Digital will post -0.59 EPS for the current year.

Insiders Place Their Bets

In other Galaxy Digital news, Director Steven Bandrowczak bought 5,100 shares of the business's stock in a transaction dated Monday, August 10th. The shares were acquired at an average price of $19.63 per share, with a total value of $100,113.00. Following the purchase, the director owned 39,186 shares in the company, valued at approximately $769,221.18. The trade was a 14.96% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Matthew W. Friedrich sold 4,993 shares of the company's stock in a transaction that occurred on Wednesday, September 9th. The shares were sold at an average price of $27.03, for a total value of $134,960.79. Following the sale, the insider owned 275,782 shares in the company, valued at $7,454,387.46. The trade was a 1.78% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 51.53% of the stock is owned by insiders.

Institutional Trading of Galaxy Digital

Several large investors have recently added to or reduced their stakes in GLXY. Triumph Capital Management raised its stake in Galaxy Digital by 13.2% during the second quarter. Triumph Capital Management now owns 4,893 shares of the company's stock valued at $134,000 after purchasing an additional 572 shares in the last quarter. Private Advisor Group LLC grew its position in Galaxy Digital by 6.9% in the first quarter. Private Advisor Group LLC now owns 10,108 shares of the company's stock worth $186,000 after acquiring an additional 655 shares during the period. Envestnet Asset Management Inc. boosted its stake in shares of Galaxy Digital by 5.2% in the second quarter. Envestnet Asset Management Inc. now owns 19,976 shares of the company's stock valued at $546,000 after purchasing an additional 994 shares during the period. Northwestern Mutual Wealth Management Co. purchased a new position in Galaxy Digital in the second quarter valued at approximately $30,000. Finally, Reyes Financial Architecture Inc. acquired a new stake in shares of Galaxy Digital during the third quarter worth about $30,000.

Key Galaxy Digital News

Here are the key news stories impacting Galaxy Digital this week:

• Positive Sentiment: Q3 earnings beat expectations: Galaxy reported adjusted EPS of $0.83, well above the $0.27-$0.29 analyst consensus, while quarterly revenue reached $8.69 billion. Reports also highlighted $323 million in quarterly net income, supported by a rebound in the company’s investments. Galaxy Announces Third Quarter 2026 Financial Results
• Positive Sentiment: AI and data-center growth: Management emphasized expanding data-center operations, including growth from Helios and artificial-intelligence infrastructure, adding a potential diversification benefit beyond Galaxy’s digital-asset investments. Galaxy Digital reports $323M quarterly profit as AI data center revenue surges
• Positive Sentiment: Share repurchase announced: A new buyback plan could support GLXY shares by signaling management’s confidence and creating additional demand for the stock. Galaxy Digital Stock Rises After Q3 Profit and New Buyback
• Positive Sentiment: Analysts remain bullish: Canaccord reaffirmed a Buy rating with a $50 price target, while Chardan maintained a Buy rating with a $35 target. HC Wainwright also retained its Buy rating at $36.
• Neutral Sentiment: Some target reductions: HC Wainwright lowered its target from $40 to $36, and BTIG cut its target from $45 to $35, suggesting analysts see upside but have moderated their expectations.
• Negative Sentiment: Bearish options positioning: Investors traded 32,920 put options Wednesday, 23% above the average daily put volume. This indicates increased demand for downside protection or bearish speculation.

Wall Street Analysts Forecast Growth

GLXY has been the subject of several research reports. Piper Sandler reduced their price objective on Galaxy Digital from $33.00 to $25.00 and set an "overweight" rating for the company in a research report on Tuesday, October 20th. Morgan Stanley lowered their price target on shares of Galaxy Digital from $48.00 to $43.00 and set an "overweight" rating for the company in a research report on Friday, October 9th. The Goldman Sachs Group set a $20.50 target price on shares of Galaxy Digital in a report on Tuesday. HC Wainwright reduced their price target on Galaxy Digital from $40.00 to $36.00 and set a "buy" rating on the stock in a research report on Wednesday. Finally, BTIG Research cut their target price on Galaxy Digital from $45.00 to $35.00 and set a "buy" rating on the stock in a research note on Tuesday. Eleven investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $35.29.

Galaxy Digital Company Profile

Galaxy Digital is a financial services and investment management company focused on digital assets and blockchain technology. Founded in 2018 by Michael Novogratz, the company provides institutional investors, corporations and other market participants with services spanning trading, asset management, investment banking, principal investments and venture capital.

Its offerings include spot and derivatives trading, lending and structured products, digital-asset funds and separately managed accounts, as well as advisory services for mergers, acquisitions, capital raising and other strategic transactions.

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