Marathon Digital (NASDAQ:MARA) Shares Up 1.8% - Time to Buy?

Key Points

• Big earnings miss: Marathon reported EPS of ($4.52) versus an expected ($0.23) and revenue of $202.31M versus $250.74M, producing a negative net margin (144.58%) and negative return on equity.
• Mixed analyst view: The consensus is a "Hold" with an average target of $19.90, but several firms cut targets (e.g., Piper Sandler $26→$16, Cantor Fitzgerald $11→$10) and Morgan Stanley initiated coverage at underweight with an $8 target.
• Market action and insider selling: Shares rose 1.8% intraday to $10.02 on above-average volume, while insiders sold ~114,515 shares (~$1.03M) over the past three months; the stock is highly volatile (beta 5.29) and trades below its 200‑day moving average ($12.04).

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report) shares shot up 1.8% during mid-day trading on Thursday . The company traded as high as $10.02 and last traded at $9.67. 50,055,172 shares traded hands during mid-day trading, an increase of 6% from the average session volume of 47,328,621 shares. The stock had previously closed at $9.50.

Analyst Ratings Changes

A number of brokerages have issued reports on MARA. 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. Weiss Ratings lowered Marathon Digital from a "hold (c-)" rating to a "sell (d)" rating in a research report on Friday, March 6th. 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. Morgan Stanley began coverage on Marathon Digital in a research report on Monday, February 9th. They issued an "underweight" rating and a $8.00 target price on the stock. Finally, HC Wainwright reaffirmed a "neutral" rating on shares of Marathon Digital in a research report on Friday, February 27th. Seven 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. Based on data from MarketBeat.com, Marathon Digital has a consensus rating of "Hold" and an average target price of $19.90.

Marathon Digital Stock Performance

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 market capitalization of $3.68 billion, a price-to-earnings ratio of -2.44 and a beta of 5.29. The company has a 50-day moving average of $8.48 and a 200-day moving average of $12.04.

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

Insider Activity at Marathon Digital

In related news, CEO Frederick G. Thiel sold 27,505 shares of the company's stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $9.18, for a total transaction of $252,495.90. Following the sale, the chief executive officer directly owned 4,788,954 shares of the company's stock, valued at approximately $43,962,597.72. This represents a 0.57% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CFO Salman Hassan Khan sold 16,000 shares of the company's stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $9.18, for a total value of $146,880.00. Following the sale, the chief financial officer directly owned 343,165 shares in the company, valued at approximately $3,150,254.70. This represents a 4.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 114,515 shares of company stock worth $1,029,678. Corporate insiders own 0.80% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in MARA. Integrated Wealth Concepts LLC grew its stake in Marathon Digital by 9.8% during the 1st quarter. Integrated Wealth Concepts LLC now owns 11,073 shares of the business services provider's stock worth $127,000 after buying an additional 991 shares during the last quarter. NewEdge Advisors LLC grew its stake in Marathon Digital by 65.3% during the 1st quarter. NewEdge Advisors LLC now owns 7,672 shares of the business services provider's stock worth $88,000 after buying an additional 3,032 shares during the last quarter. United Services Automobile Association grew its stake in Marathon Digital by 8.2% during the 1st quarter. United Services Automobile Association now owns 20,634 shares of the business services provider's stock worth $257,000 after buying an additional 1,569 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in Marathon Digital by 11.0% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 643,311 shares of the business services provider's stock worth $7,398,000 after buying an additional 63,903 shares during the last quarter. Finally, Envestnet Asset Management Inc. bought a new position in Marathon Digital during the 2nd quarter worth $183,000. 44.53% of the stock is currently owned by institutional investors.

About Marathon Digital

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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