Key Takeaways
- • Galaxy Digital (GLXY) reported third-quarter net income of $323 million, reversing an $85 million loss in the second quarter, with adjusted earnings of $0.83 per share.
- • Galaxy's board approved an additional $200 million share buyback, and its data center business made its first full-quarter contribution as Helios Phase I leasing revenue kicked in.
- • H.C. Wainwright cut its price target to $36 from $40 but kept a 'Buy' rating, citing execution at the Helios data center campus in Texas, where Phase II is fully funded and running on schedule.
- • Goldman Sachs cut its target to $20.50 from $24 and kept a 'Neutral' rating, calling the quarter a broad-based earnings beat while describing the data center segment as mixed.
- • Fifteen of 16 analysts tracked by Koyfin rate the stock 'Buy' or 'Strong Buy'; shares rose over 0.5% in morning trade Wednesday after a nearly 10% gain on Tuesday, the stock's best single-day move in a month.
Summary
Galaxy Digital shares edged higher in morning trade on Wednesday, extending a post-earnings rally even as two major brokerages trimmed their price targets. The move followed a nearly 10% jump on Tuesday, the stock's best single-day gain in a month, after Galaxy reported third-quarter results. Net income was $323 million, reversing an $85 million loss in the second quarter. Adjusted earnings came in at $0.83 per share. The data center business made its first full-quarter contribution as leasing revenue from Helios Phase I began, and the board approved another $200 million share buyback.
H.C. Wainwright lowered its target for GLXY to $36 from $40 while maintaining a 'Buy' rating, according to TheFly. The new target implies about 110% upside from Tuesday's close. The firm said Galaxy was executing well at Helios, its Texas data center campus, noting that Phase II is fully funded and running on schedule. It identified funding for Phase III and leasing at Helios II as the next catalysts to watch. H.C. Wainwright expects progress at Helios and improving crypto sentiment to outweigh near-term regulatory and credit market concerns.
Goldman Sachs took a more measured view. The bank cut its target to $20.50 from $24, implying about 19% upside to Tuesday's close, and kept a 'Neutral' rating. Goldman called the quarter a broad-based earnings beat with encouraging operating trends, but described the data center segment as mixed. It said management appeared slightly more confident about leasing the 830-megawatt Helios II site to a tenant with an investment-grade credit rating.
Among the 16 analysts tracked by Koyfin, 15 rate the stock 'Buy' or 'Strong Buy' and one rates it 'Hold'. On Stocktwits, retail sentiment around GLXY remained in the 'extremely bullish' zone, with chatter moving to 'extremely high' from 'high' over the past day.
H.C. Wainwright lowered its target for GLXY to $36 from $40 while maintaining a 'Buy' rating, according to TheFly. The new target implies about 110% upside from Tuesday's close. The firm said Galaxy was executing well at Helios, its Texas data center campus, noting that Phase II is fully funded and running on schedule. It identified funding for Phase III and leasing at Helios II as the next catalysts to watch. H.C. Wainwright expects progress at Helios and improving crypto sentiment to outweigh near-term regulatory and credit market concerns.
Goldman Sachs took a more measured view. The bank cut its target to $20.50 from $24, implying about 19% upside to Tuesday's close, and kept a 'Neutral' rating. Goldman called the quarter a broad-based earnings beat with encouraging operating trends, but described the data center segment as mixed. It said management appeared slightly more confident about leasing the 830-megawatt Helios II site to a tenant with an investment-grade credit rating.
Among the 16 analysts tracked by Koyfin, 15 rate the stock 'Buy' or 'Strong Buy' and one rates it 'Hold'. On Stocktwits, retail sentiment around GLXY remained in the 'extremely bullish' zone, with chatter moving to 'extremely high' from 'high' over the past day.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.