Marathon Digital (NASDAQ:MARA) Stock Price Down 18.7% - Here's Why

Key Points

• Marathon Digital's shares plunged 18.7% intraday to as low as $6.66 (last $6.73) on heavy volume of 78.48 million shares, about 78% above the average and well below the prior close of $8.28.
• Analysts hold a consensus "Moderate Buy" with an average target of $22.44 (8 Buys, 4 Holds), leaving a large gap between the street's price targets and the current market price.
• Insiders sold a total of 178,092 shares (~$2.15M) over the last quarter, and the stock trades below its 50‑day ($10.52) and 200‑day ($14.52) moving averages while showing high volatility (beta 5.56) despite a low P/E of 3.74.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report)'s share price fell 18.7% during mid-day trading on Thursday . The stock traded as low as $6.66 and last traded at $6.73. 78,483,439 shares traded hands during trading, an increase of 78% from the average session volume of 44,016,465 shares. The stock had previously closed at $8.28.

Analyst Ratings Changes

MARA has been the topic of several recent research reports. Guggenheim assumed coverage on shares of Marathon Digital in a research report on Tuesday, October 21st. They set a "neutral" rating on the stock. Rosenblatt Securities cut their price target on shares of Marathon Digital from $25.00 to $22.00 and set a "buy" rating on the stock in a report on Wednesday, November 5th. Macquarie upped their price objective on shares of Marathon Digital from $26.00 to $29.00 and gave the stock an "outperform" rating in a report on Wednesday, October 22nd. Piper Sandler lowered their target price on shares of Marathon Digital from $26.00 to $16.00 and set an "overweight" rating on the stock in a research report on Wednesday, January 14th. Finally, Compass Point raised Marathon Digital from a "neutral" rating to a "buy" rating and set a $30.00 price target for the company in a research report on Monday, November 24th. Eight analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $22.44.

Marathon Digital Stock Performance

The company has a debt-to-equity ratio of 0.63, a quick ratio of 2.09 and a current ratio of 2.09. The firm has a 50 day moving average of $10.52 and a two-hundred day moving average of $14.52. The stock has a market cap of $2.55 billion, a P/E ratio of 3.74 and a beta of 5.56.

Marathon Digital (NASDAQ:MARA - Get Free Report) last posted its quarterly earnings data on Tuesday, November 4th. The business services provider reported ($0.32) earnings per share for the quarter, missing the consensus estimate of ($0.26) by ($0.06). The business had revenue of $252.41 million during the quarter, compared to the consensus estimate of $254.58 million. Marathon Digital had a net margin of 100.82% and a negative return on equity of 2.59%. On average, research analysts predict that Marathon Digital Holdings, Inc. will post -1.04 EPS for the current fiscal year.

Insider Activity at Marathon Digital

In related news, General Counsel Zabi Nowaid sold 25,113 shares of the stock in a transaction dated Monday, November 10th. The shares were sold at an average price of $15.87, for a total value of $398,543.31. Following the completion of the transaction, the general counsel owned 723,136 shares of the company's stock, valued at $11,476,168.32. This represents a 3.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Frederick G. Thiel sold 27,505 shares of the stock in a transaction that occurred on Tuesday, January 20th. The stock was sold at an average price of $10.80, for a total value of $297,054.00. Following the completion of the transaction, the chief executive officer directly owned 3,517,566 shares of the company's stock, valued at approximately $37,989,712.80. The trade was a 0.78% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 178,092 shares of company stock valued at $2,153,321 over the last quarter. 0.80% of the stock is owned by company insiders.

Institutional Investors Weigh In On Marathon Digital

Several institutional investors and hedge funds have recently made changes to their positions in MARA. Hollencrest Capital Management grew its stake in Marathon Digital by 2,407.4% during the third quarter. Hollencrest Capital Management now owns 1,354 shares of the business services provider's stock worth $25,000 after buying an additional 1,300 shares during the last quarter. Bessemer Group Inc. lifted its position in shares of Marathon Digital by 56.8% during the third quarter. Bessemer Group Inc. now owns 1,819 shares of the business services provider's stock worth $33,000 after purchasing an additional 659 shares in the last quarter. Estabrook Capital Management bought a new position in Marathon Digital in the 2nd quarter worth approximately $31,000. Salomon & Ludwin LLC bought a new stake in shares of Marathon Digital during the third quarter worth $47,000. Finally, IFP Advisors Inc boosted its holdings in Marathon Digital by 375.4% in the second quarter. IFP Advisors Inc now owns 2,534 shares of the business services provider's stock valued at $40,000 after acquiring an additional 2,001 shares during the last quarter. 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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