Array Digital Infrastructure (NYSE:AD) Shares Gap Down - Here's Why

Key Points

• Shares fell sharply at the open: Array Digital Infrastructure opened at $28.98 versus its prior close of $30.38 and later traded at $28.40.
• Quarterly results beat estimates: The company reported EPS of $0.80 against a $0.07 consensus estimate, while revenue rose 14.4% year over year to $53.87 million.
• Analyst sentiment is mixed: MarketBeat reported an average “Hold” rating and a $47.40 average price target; recent rating actions included both a downgrade to Sell and price-target cuts.

Array Digital Infrastructure Inc. (NYSE:AD - Get Free Report)'s share price gapped down prior to trading on Wednesday. The stock had previously closed at $30.38, but opened at $28.98. Array Digital Infrastructure shares last traded at $28.40, with a volume of 6,225 shares traded.

Wall Street Analysts Forecast Growth

AD has been the topic of a number of analyst reports. Citigroup dropped their target price on Array Digital Infrastructure from $45.02 to $45.00 and set a "buy" rating on the stock in a research report on Thursday, August 13th. Weiss Ratings lowered Array Digital Infrastructure from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, October 19th. Finally, JPMorgan Chase & Co. reduced their price target on Array Digital Infrastructure from $54.00 to $45.00 and set an "overweight" rating for the company in a report on Wednesday, August 19th. Three analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, Array Digital Infrastructure currently has an average rating of "Hold" and an average target price of $47.40.

Array Digital Infrastructure Stock Performance

The company has a current ratio of 1.11, a quick ratio of 0.95 and a debt-to-equity ratio of 0.50. The firm's fifty day moving average is $34.47 and its 200 day moving average is $41.76. The company has a market cap of $2.42 billion, a PE ratio of 3.75 and a beta of 0.34.

Array Digital Infrastructure (NYSE:AD - Get Free Report) last announced its earnings results on Friday, November 6th. The company reported $0.80 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.07 by $0.73. Array Digital Infrastructure had a net margin of 291.79% and a return on equity of 8.67%. The business had revenue of $53.87 million for the quarter. During the same quarter last year, the business earned ($0.44) EPS. The firm's revenue for the quarter was up 14.4% compared to the same quarter last year. As a group, research analysts predict that Array Digital Infrastructure Inc. will post 1.15 EPS for the current fiscal year.

Institutional Trading of Array Digital Infrastructure

Institutional investors have recently made changes to their positions in the company. State of Alaska Department of Revenue raised its stake in Array Digital Infrastructure by 0.5% in the 3rd quarter. State of Alaska Department of Revenue now owns 87,182 shares of the company's stock valued at $2,939,000 after purchasing an additional 423 shares during the last quarter. Signaturefd LLC boosted its stake in Array Digital Infrastructure by 38.7% during the 3rd quarter. Signaturefd LLC now owns 1,954 shares of the company's stock worth $66,000 after purchasing an additional 545 shares during the last quarter. Public Employees Retirement System of Ohio purchased a new stake in shares of Array Digital Infrastructure during the first quarter worth $33,000. Fifth Third Bancorp grew its holdings in shares of Array Digital Infrastructure by 414.9% during the third quarter. Fifth Third Bancorp now owns 1,519 shares of the company's stock worth $51,000 after buying an additional 1,224 shares in the last quarter. Finally, Waverly Advisors LLC grew its holdings in shares of Array Digital Infrastructure by 10.5% during the second quarter. Waverly Advisors LLC now owns 21,411 shares of the company's stock worth $776,000 after buying an additional 2,037 shares in the last quarter. 18.03% of the stock is owned by institutional investors and hedge funds.

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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