Insider Selling: Marathon Digital (NASDAQ:MARA) General Counsel Sells 42,090 Shares of Stock

Key Points

• Marathon Digital General Counsel Zabi Nowaid sold 42,090 shares at an average price of $12.00 under a pre-arranged Rule 10b5-1 plan, netting $505,080 and lowering his holdings to 1,007,047 shares (a 4.01% decrease).
• The company reported a significant quarterly miss with EPS of ($4.52) versus a ($0.23) consensus and revenue of $202.3M, leaving Marathon with a deeply negative net margin (-144.6%) and shares trading around $11.23.
• Analyst sentiment is mixed with several downward price-target revisions (e.g., Piper Sandler to $16, Cantor Fitzgerald to $10, Morgan Stanley $8 underweight) while the average target is about $19.90, and institutional investors hold roughly 44.5% of the stock.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report) General Counsel Zabi Nowaid sold 42,090 shares of the company's stock in a transaction on Friday, April 17th. The shares were sold at an average price of $12.00, for a total transaction of $505,080.00. Following the sale, the general counsel directly owned 1,007,047 shares in the company, valued at $12,084,564. This trade represents a 4.01% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Marathon Digital Stock Performance

MARA traded down $0.40 during trading on Tuesday, reaching $11.23. 41,055,777 shares of the stock traded hands, compared to its average volume of 45,222,248. The company has a debt-to-equity ratio of 0.92, a quick ratio of 1.27 and a current ratio of 1.27. The stock's 50-day moving average is $8.88 and its 200 day moving average is $11.54. Marathon Digital Holdings, Inc. has a 12 month low of $6.66 and a 12 month high of $23.45.

Marathon Digital (NASDAQ:MARA - Get Free Report) last issued its earnings results on Thursday, February 26th. The business services provider reported ($4.52) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.23) by ($4.29). The company had revenue of $202.31 million for the quarter, compared to the consensus estimate of $250.74 million. Marathon Digital had a negative return on equity of 19.01% and a negative net margin of 144.58%.The firm's revenue was down 5.6% compared to the same quarter last year. During the same period in the prior year, the company earned $1.24 earnings per share. On average, equities analysts predict that Marathon Digital Holdings, Inc. will post -0.79 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Marathon Digital

Institutional investors have recently made changes to their positions in the stock. UBS Group AG raised its holdings in shares of Marathon Digital by 104.1% in the 3rd quarter. UBS Group AG now owns 12,098,686 shares of the business services provider's stock worth $220,922,000 after acquiring an additional 6,172,110 shares during the last quarter. Voloridge Investment Management LLC acquired a new stake in shares of Marathon Digital in the 3rd quarter worth about $93,066,000. Norges Bank acquired a new stake in shares of Marathon Digital in the 4th quarter worth about $39,492,000. Vanguard Group Inc. raised its holdings in shares of Marathon Digital by 9.8% in the 3rd quarter. Vanguard Group Inc. now owns 45,311,718 shares of the business services provider's stock worth $827,392,000 after acquiring an additional 4,049,979 shares during the last quarter. Finally, Capital Research Global Investors acquired a new stake in shares of Marathon Digital in the 3rd quarter worth about $68,090,000. Institutional investors and hedge funds own 44.53% of the company's stock.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the stock. Piper Sandler dropped their price objective on shares of Marathon Digital from $26.00 to $16.00 and set an "overweight" rating on the stock in a report on Wednesday, January 14th. Cantor Fitzgerald dropped their price objective on shares of Marathon Digital from $11.00 to $10.00 and set an "overweight" rating on the stock in a report on Thursday, April 9th. Weiss Ratings lowered shares of Marathon Digital from a "hold (c-)" rating to a "sell (d)" rating in a report on Friday, March 6th. HC Wainwright reiterated a "neutral" rating on shares of Marathon Digital in a report on Friday, February 27th. Finally, Morgan Stanley assumed coverage on shares of Marathon Digital in a report on Monday, February 9th. They set an "underweight" rating and a $8.00 price objective on the stock. Seven equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $19.90.

Marathon Digital Company Profile

Marathon Digital Holdings, Inc is a digital asset technology company specializing in the mining and acquisition of bitcoin. Headquartered in Las Vegas, Nevada, the firm employs high-performance application-specific integrated circuit (ASIC) miners and proprietary software to secure the Bitcoin network and expand its crypto-mining footprint. Marathon Digital focuses on operational efficiency and scalability, while maintaining rigorous standards for regulatory compliance and corporate governance.

The company operates multiple large-scale mining facilities throughout North America, including sites in Texas, Montana and New York.

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