Array Digital Infrastructure (NYSE:AD) Reaches New 52-Week Low - Should You Sell?

Key Points

• Array Digital Infrastructure shares fell to a new 52-week low, trading as low as $33.70 and down about 2% from the prior close.
• Analysts have lowered several price targets, but the stock retains a “Moderate Buy” consensus rating with an average target of $47.40, implying substantial upside from current levels.
• The company reported quarterly EPS of $4.15, far exceeding the $0.27 consensus estimate, on revenue of $54.07 million; institutional investors own 18.03% of the stock.

Array Digital Infrastructure Inc. (NYSE:AD - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Monday. The stock traded as low as $33.70 and last traded at $33.6640, with a volume of 37207 shares. The stock had previously closed at $34.49.

Analysts Set New Price Targets

Several equities analysts have recently commented on the company. Royal Bank Of Canada cut their price target on Array Digital Infrastructure from $52.00 to $40.00 and set a "sector perform" rating on the stock in a research note on Friday, July 10th. JPMorgan Chase & Co. reduced their price target on shares of Array Digital Infrastructure from $54.00 to $45.00 and set an "overweight" rating for the company in a report on Wednesday, August 19th. Citigroup dropped their price objective on shares of Array Digital Infrastructure from $45.02 to $45.00 and set a "buy" rating on the stock in a research note on Thursday, August 13th. Finally, Weiss Ratings downgraded shares of Array Digital Infrastructure from a "hold (c)" rating to a "hold (c-)" rating in a research note on Thursday, August 20th. Three investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $47.40.

Array Digital Infrastructure Stock Down 2.0%

The firm has a market capitalization of $2.92 billion, a PE ratio of 5.45 and a beta of 0.28. The business has a 50-day moving average price of $35.97 and a 200-day moving average price of $42.20. The company has a quick ratio of 0.95, a current ratio of 0.95 and a debt-to-equity ratio of 0.52.

Array Digital Infrastructure (NYSE:AD - Get Free Report) last posted its earnings results on Friday, August 7th. The company reported $4.15 EPS for the quarter, beating analysts' consensus estimates of $0.27 by $3.88. Array Digital Infrastructure had a return on equity of 8.52% and a net margin of 250.79%.The company had revenue of $54.07 million for the quarter. Equities research analysts forecast that Array Digital Infrastructure Inc. will post 1.15 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Array Digital Infrastructure

Several hedge funds and other institutional investors have recently made changes to their positions in AD. Dimensional Fund Advisors LP increased its holdings in shares of Array Digital Infrastructure by 2.6% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,299,582 shares of the company's stock valued at $106,102,000 after acquiring an additional 57,198 shares during the last quarter. Jericho Capital Asset Management L.P. acquired a new position in Array Digital Infrastructure in the fourth quarter valued at approximately $97,366,000. Bank of America Corp DE acquired a new position in Array Digital Infrastructure in the second quarter valued at approximately $26,853,000. BlackRock Inc. purchased a new position in Array Digital Infrastructure in the second quarter valued at approximately $14,537,000. Finally, Irenic Capital Management LP purchased a new position in Array Digital Infrastructure in the fourth quarter valued at approximately $12,616,000. Hedge funds and other institutional investors own 18.03% of the company's stock.

About Array Digital Infrastructure

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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