Marathon Digital (NASDAQ:MARA) Shares Gap Up - Here's What Happened

Key Points

• Shares gapped up — Marathon Digital opened at $9.18 after a $8.76 close and last traded near $9.85 (up about 13.4%) on volume of ~14.44 million shares.
• Big earnings miss — the company reported ($4.52) EPS versus estimates of ($0.23) and revenue of $202.3M versus $250.7M expected, with a negative net margin (144.58%) and negative return on equity (19.01%).
• Analyst views and insider activity — several firms cut price targets (e.g., Cantor Fitzgerald to $11, JPMorgan to $13), the consensus rating is a "Hold" with a $20 target, and insiders (including the CEO and CFO) have recently sold shares.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report)'s stock price gapped up before the market opened on Friday . The stock had previously closed at $8.76, but opened at $9.18. Marathon Digital shares last traded at $9.8490, with a volume of 14,440,956 shares traded.

Wall Street Analyst Weigh In

Several research firms have issued reports on MARA. Cantor Fitzgerald decreased their price objective on shares of Marathon Digital from $21.00 to $11.00 and set an "overweight" rating for the company in a research note on Friday, February 27th. JPMorgan Chase & Co. reduced their target price on Marathon Digital from $20.00 to $13.00 and set an "overweight" rating for the company in a report on Monday, November 24th. Piper Sandler decreased their target price on Marathon Digital from $26.00 to $16.00 and set an "overweight" rating for the company in a research report on Wednesday, January 14th. Compass Point raised Marathon Digital from a "neutral" rating to a "buy" rating and set a $30.00 price target on the stock in a research report on Monday, November 24th. Finally, HC Wainwright reiterated a "neutral" rating on shares of Marathon Digital in a research note on Friday, February 27th. Seven research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, Marathon Digital currently has a consensus rating of "Hold" and a consensus price target of $20.00.

Marathon Digital Stock Up 13.4%

The company has a current ratio of 1.27, a quick ratio of 1.27 and a debt-to-equity ratio of 0.92. The firm has a 50-day moving average of $9.18 and a 200 day moving average of $13.06. The stock has a market capitalization of $3.78 billion, a price-to-earnings ratio of -2.49 and a beta of 5.51.

Marathon Digital (NASDAQ:MARA - Get Free Report) last posted its earnings results on Thursday, February 26th. The business services provider reported ($4.52) EPS for the quarter, missing analysts' consensus estimates of ($0.23) by ($4.29). Marathon Digital had a negative return on equity of 19.01% and a negative net margin of 144.58%.The firm had revenue of $202.31 million for the quarter, compared to analyst estimates of $250.74 million. During the same period in the previous year, the firm posted $1.24 earnings per share. The company's revenue for the quarter was down 5.6% on a year-over-year basis. On average, sell-side analysts anticipate that Marathon Digital Holdings, Inc. will post -1.04 earnings per share for the current year.

Insider Buying and Selling

In other Marathon Digital news, CEO Frederick G. Thiel sold 27,505 shares of Marathon Digital stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $7.66, for a total transaction of $210,688.30. Following the transaction, the chief executive officer directly owned 3,381,861 shares in the company, valued at approximately $25,905,055.26. The trade was a 0.81% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Salman Hassan Khan sold 16,000 shares of Marathon Digital stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $7.66, for a total value of $122,560.00. Following the transaction, the chief financial officer owned 359,165 shares in the company, valued at $2,751,203.90. This represents a 4.26% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 133,247 shares of company stock worth $1,325,255 in the last 90 days. 0.80% of the stock is owned by company insiders.

Institutional Trading of Marathon Digital

A number of hedge funds have recently made changes to their positions in MARA. Bessemer Group Inc. grew its position in Marathon Digital by 56.8% during the third quarter. Bessemer Group Inc. now owns 1,819 shares of the business services provider's stock valued at $33,000 after purchasing an additional 659 shares in the last quarter. Archer Investment Corp lifted its position in Marathon Digital by 10.9% in the 2nd quarter. Archer Investment Corp now owns 7,650 shares of the business services provider's stock worth $120,000 after buying an additional 750 shares in the last quarter. Smartleaf Asset Management LLC lifted its position in Marathon Digital by 15.9% in the 3rd quarter. Smartleaf Asset Management LLC now owns 5,812 shares of the business services provider's stock worth $108,000 after buying an additional 799 shares in the last quarter. Vanguard Personalized Indexing Management LLC boosted its stake in shares of Marathon Digital by 3.1% during the 3rd quarter. Vanguard Personalized Indexing Management LLC now owns 29,389 shares of the business services provider's stock valued at $537,000 after buying an additional 882 shares during the period. Finally, Ameritas Investment Partners Inc. boosted its stake in shares of Marathon Digital by 2.7% during the 2nd quarter. Ameritas Investment Partners Inc. now owns 35,443 shares of the business services provider's stock valued at $556,000 after buying an additional 934 shares during the period. 44.53% of the stock is owned by hedge funds and other institutional investors.

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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