Marathon Digital (NASDAQ:MARA) Shares Up 7.7% - Should You Buy?

Key Points

• Marathon Digital shares jumped 7.7% to $9.65 on unusually heavy volume, with 66.3 million shares traded—45% above the average session volume.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an $18.78 price target, although targets range from $6 to $27 and include both buy and sell ratings.
• The company reported a significant quarterly loss, missing EPS and revenue estimates, with revenue down 26.7% year over year and a negative net margin of 429.71%; insiders have also sold $831,696 in stock over the past 90 days.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report) shares rose 7.7% during mid-day trading on Wednesday . The stock traded as high as $9.89 and last traded at $9.65. 66,330,289 shares changed hands during trading, an increase of 45% from the average session volume of 45,714,355 shares. The stock had previously closed at $8.96.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on MARA shares. BTIG Research reissued a "buy" rating and issued a $27.00 price target on shares of Marathon Digital in a report on Monday, June 1st. Citizens Jmp assumed coverage on shares of Marathon Digital in a research note on Wednesday, June 24th. They issued a "market outperform" rating and a $24.00 target price on the stock. Weiss Ratings reissued a "sell (d-)" rating on shares of Marathon Digital in a research report on Friday, August 7th. Cantor Fitzgerald cut their price target on shares of Marathon Digital from $14.00 to $12.00 and set an "overweight" rating for the company in a research note on Friday, August 7th. Finally, Morgan Stanley lifted their price objective on Marathon Digital from $5.50 to $6.00 and gave the company an "underweight" rating in a report on Thursday, August 13th. Eight equities research 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 MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $18.78.

Marathon Digital Price Performance

The stock has a market capitalization of $3.73 billion, a P/E ratio of -1.05 and a beta of 5.40. The company's 50 day simple moving average is $12.21 and its two-hundred day simple moving average is $10.98. The company has a debt-to-equity ratio of 1.15, a current ratio of 0.89 and a quick ratio of 0.89.

Marathon Digital (NASDAQ:MARA - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The business services provider reported ($1.60) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.17 by ($1.77). The business had revenue of $174.88 million during the quarter, compared to the consensus estimate of $209.44 million. Marathon Digital had a negative net margin of 429.71% and a negative return on equity of 26.05%. The company's revenue for the quarter was down 26.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.84 EPS. As a group, equities analysts expect that Marathon Digital Holdings, Inc. will post -1.24 EPS for the current fiscal year.

Insider Activity at Marathon Digital

In other Marathon Digital news, Director Douglas K. Mellinger sold 7,000 shares of the stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $16.00, for a total transaction of $112,000.00. Following the sale, the director owned 231,618 shares of the company's stock, valued at $3,705,888. This represents a 2.93% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Zabi Nowaid sold 7,000 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 $99,750.00. Following the completion of the sale, the general counsel owned 963,768 shares of the company's stock, valued at $13,733,694. The trade was a 0.72% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 57,505 shares of company stock worth $831,696 in the last 90 days. Corporate insiders own 0.97% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Ascentis Independent Advisors acquired a new stake in shares of Marathon Digital in the 1st quarter valued at $28,000. Bogart Wealth LLC lifted its stake 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 acquiring an additional 3,954 shares during the period. Eurizon Capital SGR S.p.A. bought a new position in Marathon Digital in the fourth quarter valued at about $36,000. Hantz Financial Services Inc. boosted its holdings in Marathon Digital by 344.8% in the fourth quarter. Hantz Financial Services Inc. now owns 5,022 shares of the business services provider's stock valued at $45,000 after acquiring an additional 3,893 shares during the last quarter. Finally, CoreCap Advisors LLC increased its position in Marathon Digital by 128.0% in the second quarter. CoreCap Advisors LLC now owns 3,651 shares of the business services provider's stock worth $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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