Marathon Digital (NASDAQ:MARA) Shares Up 1.3% - Time to Buy?

Key Points

• Marathon Digital shares rose 1.3% to $9.68 in midday trading, while volume remained below its average. The stock has a high beta of 5.40, a market capitalization of approximately $3.74 billion, and trades below its 50- and 200-day moving averages.
• Analyst sentiment is broadly positive, with eight Buy, two Hold, and two Sell ratings producing a “Moderate Buy” consensus and an average price target of $18.72. However, several firms recently lowered their targets, including Piper Sandler to $13 and Cantor Fitzgerald to $12.
• The company reported a significant quarterly loss, with EPS of negative $1.60 versus expectations of positive $0.17, revenue below estimates, and a 26.7% year-over-year revenue decline. Insiders sold $1.45 million of stock during the last quarter, while institutional investors own 44.53% of shares.

Shares of Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report) were up 1.3% on Tuesday . The stock traded as high as $10.15 and last traded at $9.68. 36,839,631 shares traded hands during mid-day trading, a decline of 19% from the average daily volume of 45,685,629 shares. The stock had previously closed at $9.56.

Wall Street Analysts Forecast Growth

MARA has been the topic of several analyst reports. Rosenblatt Securities reiterated a "buy" rating and issued a $15.00 target price on shares of Marathon Digital in a report on Friday. Piper Sandler lowered their price target on shares of Marathon Digital from $16.00 to $13.00 and set an "overweight" rating for the company in a report on Friday, July 17th. Morgan Stanley dropped their price target on shares of Marathon Digital from $7.00 to $5.50 and set an "underweight" rating on the stock in a research report on Wednesday, July 8th. Cantor Fitzgerald reduced their price objective on shares of Marathon Digital from $14.00 to $12.00 and set an "overweight" rating on the stock in a research note on Friday. Finally, Citizens Jmp started coverage on shares of Marathon Digital in a research report on Wednesday, June 24th. They set a "market outperform" rating and a $24.00 price objective for the company. Eight analysts have rated the stock with a Buy rating, two have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, Marathon Digital has an average rating of "Moderate Buy" and an average price target of $18.72.

Marathon Digital Stock Up 1.3%

The firm has a market cap of $3.74 billion, a price-to-earnings ratio of -1.06 and a beta of 5.40. The firm has a 50 day moving average of $12.71 and a 200 day moving average of $11.02. The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 1.15.

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

Insider Activity at Marathon Digital

In related news, General Counsel Zabi Nowaid sold 8,250 shares of the business's stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $12.00, for a total value of $99,000.00. Following the completion of the sale, the general counsel directly owned 970,768 shares of the company's stock, valued at $11,649,216. The trade was a 0.84% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Douglas K. Mellinger sold 7,000 shares of the company's stock in a transaction that occurred on Monday, June 22nd. The stock was sold at an average price of $16.00, for a total value of $112,000.00. Following the transaction, the director directly owned 231,618 shares in the company, valued at approximately $3,705,888. This trade represents a 2.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 109,260 shares of company stock worth $1,452,756 over the last quarter. Company insiders own 0.97% of the company's stock.

Hedge Funds Weigh In On Marathon Digital

A number of large investors have recently modified their holdings of the company. Ascentis Independent Advisors bought a new stake in Marathon Digital during the 1st quarter valued at $28,000. Bogart Wealth LLC grew its holdings in shares of Marathon Digital by 4,345.1% during the first quarter. Bogart Wealth LLC now owns 4,045 shares of the business services provider's stock valued at $33,000 after buying an additional 3,954 shares during the last quarter. Eurizon Capital SGR S.p.A. acquired a new position in shares of Marathon Digital during the fourth quarter valued at about $36,000. Hantz Financial Services Inc. increased its position 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 acquiring an additional 3,893 shares in the last quarter. Finally, CoreCap Advisors LLC increased its position in shares of Marathon Digital by 128.0% during the second quarter. CoreCap Advisors LLC now owns 3,651 shares of the business services provider's stock worth $51,000 after acquiring an additional 2,050 shares in the last quarter. 44.53% of the stock is currently owned by 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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