Marathon Digital (NASDAQ:MARA) Shares Up 17.6% - Still a Buy?

Key Points

• Marathon Digital shares surged 17.6% to $11.82 in mid-day trading, with roughly 45.1 million shares changing hands.
• Analyst sentiment remains positive overall: eight analysts rate MARA a Buy, while the average rating is “Moderate Buy” with an average price target of $18.50. However, targets range widely from $5.50 to $27.00.
• Institutional investors own 44.53% of the company, while insiders have sold 109,260 shares worth about $1.45 million over the past quarter; Marathon operates large-scale Bitcoin-mining facilities across North America.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report) was up 17.6% during mid-day trading on Thursday . The stock traded as high as $12.03 and last traded at $11.82. Approximately 45,131,623 shares traded hands during trading, a decline of 2% from the average session volume of 46,189,199 shares. The stock had previously closed at $10.05.

Wall Street Analysts Forecast Growth

Several research analysts have commented on MARA shares. Rosenblatt Securities raised their target price on shares of Marathon Digital from $11.00 to $15.00 and gave the stock a "buy" rating in a report on Friday, May 1st. BTIG Research restated a "buy" rating and set a $27.00 price target on shares of Marathon Digital in a report on Monday, June 1st. Morgan Stanley reduced their price target on shares of Marathon Digital from $7.00 to $5.50 and set an "underweight" rating for the company in a research report on Wednesday, July 8th. 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. Finally, Citizens Jmp initiated coverage on shares of Marathon Digital in a research note on Wednesday, June 24th. They set a "market outperform" rating and a $24.00 target price on the stock. Eight analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Marathon Digital has an average rating of "Moderate Buy" and an average price target of $18.50.

Marathon Digital Stock Performance

The firm's fifty day moving average is $13.21 and its 200 day moving average is $11.01. The firm has a market capitalization of $4.51 billion, a price-to-earnings ratio of -2.07 and a beta of 5.36. The company has a debt-to-equity ratio of 0.99, a current ratio of 1.84 and a quick ratio of 1.84.

Insider Activity at Marathon Digital

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

Institutional Trading of Marathon Digital

A number of institutional investors have recently added to or reduced their stakes in MARA. Vanguard Group Inc. lifted its stake in shares of Marathon Digital by 3.1% in the 4th quarter. Vanguard Group Inc. now owns 46,706,277 shares of the business services provider's stock valued at $419,422,000 after purchasing an additional 1,394,559 shares during the last quarter. State Street Corp increased its position in Marathon Digital by 1.4% during the second quarter. State Street Corp now owns 13,455,176 shares of the business services provider's stock worth $210,977,000 after buying an additional 191,380 shares during the last quarter. UBS Group AG increased its position in Marathon Digital by 104.1% during the third quarter. UBS Group AG now owns 12,098,686 shares of the business services provider's stock worth $220,922,000 after buying an additional 6,172,110 shares during the last quarter. Marex Group plc raised its holdings in Marathon Digital by 2.6% during the fourth quarter. Marex Group plc now owns 10,137,713 shares of the business services provider's stock valued at $91,037,000 after buying an additional 259,210 shares in the last quarter. Finally, Geode Capital Management LLC raised its holdings in Marathon Digital by 2.6% during the fourth quarter. Geode Capital Management LLC now owns 9,957,766 shares of the business services provider's stock valued at $89,434,000 after buying an additional 251,674 shares in the last quarter. 44.53% of the stock is currently owned by institutional investors and hedge funds.

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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