Marathon Digital (NASDAQ:MARA) Shares Down 7.8% - Time to Sell?

Key Points

• Marathon Digital shares fell 7.8% to $8.96 in heavy mid-day trading, with the stock trading below its 50-day moving average of $12.29.
• Analyst sentiment remains mixed: the stock has a consensus “Moderate Buy” rating and an average price target of $18.78, but targets range from $6 to $27 and include both buy and sell ratings.
• The company reported a significant quarterly loss of $1.60 per share, missed revenue estimates, and saw revenue decline 26.7% year over year; insiders have also sold $831,696 worth of shares over the past 90 days.

Shares of Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report) dropped 7.8% on Tuesday . The stock traded as low as $8.91 and last traded at $8.96. 45,036,097 shares changed hands during mid-day trading, a decline of 1% from the average daily volume of 45,553,887 shares. The stock had previously closed at $9.72.

Wall Street Analyst Weigh In

Several research firms have recently commented on MARA. Morgan Stanley upped their price target on Marathon Digital from $5.50 to $6.00 and gave the stock an "underweight" rating in a research note on Thursday, August 13th. Piper Sandler lowered their price objective on shares of Marathon Digital from $16.00 to $13.00 and set an "overweight" rating on the stock in a research report on Friday, July 17th. Rosenblatt Securities reissued a "buy" rating and issued a $15.00 price objective on shares of Marathon Digital in a research note on Friday, August 7th. BTIG Research reissued a "buy" rating and issued a $27.00 price objective on shares of Marathon Digital in a research note on Monday, June 1st. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Marathon Digital in a research report on Friday, August 7th. Eight analysts have rated the stock with a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $18.78.

Marathon Digital Stock Performance

The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 1.15. The stock has a fifty day moving average price of $12.29 and a two-hundred day moving average price of $10.99. The company has a market capitalization of $3.46 billion, a price-to-earnings ratio of -0.98 and a beta of 5.40.

Marathon Digital (NASDAQ:MARA - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The business services provider reported ($1.60) EPS for the quarter, missing analysts' consensus estimates of $0.17 by ($1.77). The company had revenue of $174.88 million for the quarter, compared to analyst estimates of $209.44 million. Marathon Digital had a negative net margin of 429.71% and a negative return on equity of 26.05%. The firm's revenue was down 26.7% on a year-over-year basis. During the same period in the previous year, the business earned $1.84 EPS. As a group, analysts forecast that Marathon Digital Holdings, Inc. will post -2.28 EPS for the current fiscal year.

Insider Activity

In other Marathon Digital news, CFO Salman Hassan Khan sold 16,000 shares of the firm's stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $14.25, for a total transaction of $228,000.00. Following the sale, the chief financial officer directly owned 409,066 shares of the company's stock, valued at $5,829,190.50. This trade represents a 3.76% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Zabi Nowaid sold 7,000 shares of Marathon Digital stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $14.25, for a total transaction of $99,750.00. Following the sale, the general counsel owned 963,768 shares of the company's stock, valued at approximately $13,733,694. This trade represents a 0.72% decrease in their ownership of the stock. 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 a total of 57,505 shares of company stock valued at $831,696 in the last 90 days. Company insiders own 0.97% of the company's stock.

Institutional Trading of Marathon Digital

Hedge funds have recently bought and sold shares of the company. Ascentis Independent Advisors purchased a new stake in Marathon Digital in the 1st quarter worth approximately $28,000. Bogart Wealth LLC lifted its stake in shares of Marathon Digital by 4,345.1% during the 1st quarter. Bogart Wealth LLC now owns 4,045 shares of the business services provider's stock worth $33,000 after purchasing an additional 3,954 shares during the period. Eurizon Capital SGR S.p.A. acquired a new stake in shares of Marathon Digital during the fourth quarter worth $36,000. Hantz Financial Services Inc. boosted its holdings in shares of Marathon Digital by 344.8% during the fourth quarter. Hantz Financial Services Inc. now owns 5,022 shares of the business services provider's stock worth $45,000 after purchasing an additional 3,893 shares during the last quarter. Finally, CoreCap Advisors LLC grew its position in shares of Marathon Digital by 128.0% in the second quarter. CoreCap Advisors LLC now owns 3,651 shares of the business services provider's stock valued at $51,000 after purchasing an additional 2,050 shares during the period. Institutional investors and hedge funds 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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