Galaxy Digital (NASDAQ:GLXY) Shares Gap Down - Should You Sell?

Key Points

• Galaxy Digital shares fell sharply at the open, dropping from a previous close of $16.83 to $15.53; they last traded near $15.56.
• Analyst views remain broadly positive but mixed: the consensus is “Moderate Buy” with a $35.29 average price target, although several firms recently lowered targets and Weiss downgraded the stock to “Sell.”
• The company beat quarterly EPS estimates ($0.83 versus $0.29), while a director’s sale of 12,000 shares—about 10% of her stake—was cited as a near-term concern.

Galaxy Digital Inc. (NASDAQ:GLXY - Get Free Report) shares gapped down prior to trading on Wednesday. The stock had previously closed at $16.83, but opened at $15.53. Galaxy Digital shares last traded at $15.5560, with a volume of 1,391,580 shares changing hands.

Key Headlines Impacting Galaxy Digital

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

• Positive Sentiment: Maxim Group maintained a Buy rating and a $36 price target. Its estimates show a sharply smaller projected FY2027 loss than previously forecast and positive FY2028 earnings of $1.55 per share. Maxim Group estimates
• Positive Sentiment: A technical analysis sees a potential bullish reversal, with buyers defending support and a possible double-bottom pattern after earnings. FXEmpire price forecast
• Negative Sentiment: Insider selling is a near-term overhang: Director Medina Adams sold 12,000 shares for about $197,400, reducing her stake by roughly 10%. The latest report linked the stock’s decline to insider selling. Report on GLXY stock and insider selling

Analyst Ratings Changes

Several research firms have recently commented on GLXY. Piper Sandler lowered their price target 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. Canaccord Genuity Group reissued a "buy" rating and issued a $50.00 target price on shares of Galaxy Digital in a report on Wednesday, October 28th. Chardan Capital reiterated a "buy" rating and issued a $35.00 price objective on shares of Galaxy Digital in a research note on Tuesday, October 27th. BTIG Research reduced their price target on Galaxy Digital from $45.00 to $35.00 and set a "buy" rating for the company in a report on Tuesday, October 27th. Finally, Weiss Ratings lowered Galaxy Digital from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, October 23rd. Eleven equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $35.29.

Galaxy Digital Stock Performance

The company has a debt-to-equity ratio of 1.04, a current ratio of 1.50 and a quick ratio of 1.50. The stock has a 50-day moving average price of $21.54 and a 200-day moving average price of $24.10. The firm has a market capitalization of $5.74 billion, a PE ratio of -14.67 and a beta of 5.38.

Galaxy Digital (NASDAQ:GLXY - Get Free Report) last announced its quarterly earnings data on Tuesday, October 27th. The company reported $0.83 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.29 by $0.54. The firm had revenue of $8.69 billion for the quarter. Galaxy Digital had a negative return on equity of 10.30% and a negative net margin of 0.89%. On average, research analysts expect that Galaxy Digital Inc. will post -0.07 EPS for the current fiscal year.

Insider Transactions at Galaxy Digital

In other news, Director Steven Bandrowczak bought 5,100 shares of the stock in a transaction dated Monday, August 10th. The stock was bought at an average cost of $19.63 per share, with a total value of $100,113.00. Following the purchase, the director owned 39,186 shares of the company's stock, valued at approximately $769,221.18. This represents a 14.96% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Medina Adams sold 12,000 shares of the company's stock in a transaction dated Friday, October 30th. The shares were sold at an average price of $16.45, for a total value of $197,400.00. Following the completion of the sale, the director owned 107,919 shares of the company's stock, valued at $1,775,267.55. This represents a 10.01% decrease in their position. The SEC filing for this sale provides additional information. 51.53% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. State Street Corp increased its holdings in Galaxy Digital by 99.7% in the second quarter. State Street Corp now owns 3,833,993 shares of the company's stock worth $104,821,000 after purchasing an additional 1,913,688 shares in the last quarter. Moore Capital Management LP grew its position in shares of Galaxy Digital by 52.9% during the 2nd quarter. Moore Capital Management LP now owns 2,082,250 shares of the company's stock worth $56,929,000 after buying an additional 720,000 shares during the period. Sullivan Wood Capital Management LLC grew its position in shares of Galaxy Digital by 4.0% during the 3rd quarter. Sullivan Wood Capital Management LLC now owns 1,460,546 shares of the company's stock worth $33,213,000 after buying an additional 55,804 shares during the period. Bank of America Corp DE increased its stake in shares of Galaxy Digital by 112.4% in the 2nd quarter. Bank of America Corp DE now owns 1,145,172 shares of the company's stock valued at $31,309,000 after acquiring an additional 605,986 shares in the last quarter. Finally, Anson Funds Management LP acquired a new position in shares of Galaxy Digital during the 1st quarter valued at $11,070,000.

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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