Marathon Digital (NASDAQ:MARA) Shares Down 2.7% - What's Next?

Key Points

• Marathon Digital shares fell 2.7% to $10.72 on Wednesday (intraday low $10.27) with 34.4M shares traded, and analysts hold an average "Hold" rating with a $19 average target amid several recent downgrades and target cuts.
• The company posted a severe quarterly earnings miss, reporting EPS of ($4.52) vs. consensus ($0.23) and revenue of $202.3M vs. $250.7M expected, resulting in a negative net margin (−144.58%) and negative ROE.
• Insiders have been selling (172,605 shares in the last 90 days, including sales by the GC and CFO under 10b5‑1 plans) even as institutions own ~44.5% of the stock, led by Vanguard's large stake.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report) traded down 2.7% on Wednesday . The stock traded as low as $10.27 and last traded at $10.72. 34,385,120 shares were traded during trading, a decline of 26% from the average session volume of 46,603,672 shares. The stock had previously closed at $11.02.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on the company. Morgan Stanley assumed coverage on Marathon Digital in a research report on Monday, February 9th. They set an "underweight" rating and a $8.00 target price on the stock. HC Wainwright reissued a "neutral" rating on shares of Marathon Digital in a research report on Friday, February 27th. Piper Sandler cut their target price on Marathon Digital from $26.00 to $16.00 and set an "overweight" rating on the stock in a research report on Wednesday, January 14th. Cantor Fitzgerald cut their target price on Marathon Digital from $11.00 to $10.00 and set an "overweight" rating on the stock in a research report on Thursday, April 9th. Finally, Weiss Ratings downgraded Marathon Digital from a "hold (c-)" rating to a "sell (d)" rating in a research report on Friday, March 6th. Seven investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, Marathon Digital presently has an average rating of "Hold" and an average target price of $19.00.

Marathon Digital Stock Down 2.7%

The company has a market cap of $4.08 billion, a PE ratio of -2.71 and a beta of 5.29. The company's 50 day moving average is $9.26 and its 200 day moving average is $11.24. The company has a current ratio of 1.27, a quick ratio of 1.27 and a debt-to-equity ratio of 0.92.

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

Insider Buying and Selling

In related news, General Counsel Zabi Nowaid sold 42,090 shares of the firm's stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $12.00, for a total value of $505,080.00. Following the transaction, the general counsel owned 1,007,047 shares of the company's stock, valued at $12,084,564. This trade represents a 4.01% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Salman Hassan Khan sold 16,000 shares of the stock in a transaction on Friday, April 17th. The stock was sold at an average price of $11.68, for a total value of $186,880.00. Following the transaction, the chief financial officer directly owned 441,066 shares in the company, valued at $5,151,650.88. The trade was a 3.50% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 172,605 shares of company stock valued at $1,745,843 in the last 90 days. Company insiders own 0.80% of the company's stock.

Hedge Funds Weigh In On Marathon Digital

Several institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. raised its stake in Marathon Digital by 9.8% in the third quarter. Vanguard Group Inc. now owns 45,311,718 shares of the business services provider's stock worth $827,392,000 after buying an additional 4,049,979 shares in the last quarter. Mizuho Markets Americas LLC bought a new stake in Marathon Digital during the third quarter valued at about $5,438,000. WINTON GROUP Ltd bought a new stake in Marathon Digital during the third quarter valued at about $4,643,000. Farallon Capital Management LLC boosted its position in Marathon Digital by 338.3% during the third quarter. Farallon Capital Management LLC now owns 3,660,000 shares of the business services provider's stock valued at $66,832,000 after purchasing an additional 2,825,000 shares in the last quarter. Finally, Stevens Capital Management LP boosted its position in Marathon Digital by 446.6% during the third quarter. Stevens Capital Management LP now owns 319,549 shares of the business services provider's stock valued at $5,835,000 after purchasing an additional 261,085 shares in the last quarter. Hedge funds and other institutional investors own 44.53% of the company's stock.

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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