Erin Brown, Chief Operating Officer at Galaxy Digital GLXY, reported an insider sell on May 21, according to a new SEC filing.
What Happened: Brown’s decision to sell 87,704 shares of Galaxy Digital was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $1,944,397.
During Thursday’s morning session, Galaxy Digital shares up by 6.19%, currently priced at $23.83.
About Galaxy Digital
Galaxy Digital Inc is a technology-driven diversified financial services and investment management firm that provides institutions with a full suite of scaled financial solutions spanning the digital asset ecosystem. The group’s mission is to engineer a new economic paradigm, and it is focused on digital assets and blockchain technology. Its operating businesses are of Digital Assets, Data Centers, and Treasury and Corporate.
Galaxy Digital: Financial Performance Dissected
Revenue Growth: Galaxy Digital’s revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 107.91%. This indicates a substantial increase in the company’s top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.
Profitability Metrics:
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Gross Margin: The company shows a low gross margin of 2.41%, suggesting potential challenges in cost control and profitability compared to its peers.
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Earnings per Share (EPS): With an EPS below industry norms, Galaxy Digital exhibits below-average bottom-line performance with a current EPS of 0.898448.
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.34, caution is advised due to increased financial risk.
Financial Valuation Breakdown:
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Price to Earnings (P/E) Ratio: The P/E ratio of 8.47 is lower than the industry average, implying a discounted valuation for Galaxy Digital’s stock.
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Price to Sales (P/S) Ratio: With a P/S ratio of 0.07 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 10.38, Galaxy Digital’s EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation
Market Capitalization: Indicating a reduced size compared to industry averages, the company’s market capitalization poses unique challenges.
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Illuminating the Importance of Insider Transactions
Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.
From a legal standpoint, the term “insider” pertains to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
A company insider’s new purchase is a indicator of their positive anticipation for a rise in the stock.
While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.
A Deep Dive into Insider Transaction Codes
In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Galaxy Digital’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
