Marathon Digital (NASDAQ:MARA) Stock Price Down 2.1% - What's Next?

Key Points

• Marathon Digital shares fell 2.1% in mid-day trading, with the stock last changing hands at $12.18 after trading as low as $11.62. Volume was below average, with about 35.3 million shares traded versus a 46.7 million average.
• Analyst sentiment is mixed but still leans cautious: the consensus rating is Hold with a consensus price target of $18.50. Recent moves included Rosenblatt raising its target to $15 and Morgan Stanley starting coverage with an Underweight rating and an $8 target.
• The company’s latest earnings were weak, as Marathon Digital reported a much larger-than-expected loss of $4.52 per share and revenue of $202.31 million, missing estimates. Insiders also sold shares recently, while hedge funds continue to hold a meaningful stake in the stock.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report) shares fell 2.1% during mid-day trading on Monday . The company traded as low as $11.62 and last traded at $12.18. 35,309,602 shares changed hands during mid-day trading, a decline of 24% from the average session volume of 46,700,297 shares. The stock had previously closed at $12.44.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on MARA. Rosenblatt Securities raised their target price on Marathon Digital from $11.00 to $15.00 and gave the stock a "buy" rating in a research note on Friday, May 1st. Weiss Ratings downgraded Marathon Digital from a "sell (d)" rating to a "sell (d-)" rating in a research note on Tuesday, May 12th. Cantor Fitzgerald cut their price objective on Marathon Digital from $11.00 to $10.00 and set an "overweight" rating for the company in a research report on Thursday, April 9th. HC Wainwright reissued a "neutral" rating on shares of Marathon Digital in a research report on Friday, February 27th. Finally, Morgan Stanley began coverage on Marathon Digital in a research report on Monday, February 9th. They set an "underweight" rating and a $8.00 price objective for the company. Seven research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $18.50.

Marathon Digital Stock Down 2.1%

The business has a 50-day moving average of $10.17 and a 200-day moving average of $10.64. The company has a debt-to-equity ratio of 0.99, a quick ratio of 1.84 and a current ratio of 1.84. The stock has a market capitalization of $4.64 billion, a price-to-earnings ratio of -2.13 and a beta of 5.41.

Marathon Digital (NASDAQ:MARA - Get Free Report) last issued its quarterly earnings data on Thursday, February 26th. The business services provider reported ($4.52) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.23) by ($4.29). The business had revenue of $202.31 million for the quarter, compared to analyst estimates of $250.74 million. Marathon Digital had a negative return on equity of 23.20% and a negative net margin of 234.83%.The firm's revenue for the quarter was down 5.6% compared to the same quarter last year. During the same period in the previous year, the business posted $1.24 earnings per share. On average, sell-side analysts expect that Marathon Digital Holdings, Inc. will post -1.67 EPS for the current year.

Insider Activity at Marathon Digital

In related news, CFO Salman Hassan Khan sold 16,000 shares of the firm's stock in a transaction dated Friday, April 17th. The stock was sold at an average price of $11.68, for a total transaction of $186,880.00. Following the completion of the transaction, the chief financial officer directly owned 441,066 shares in the company, valued at $5,151,650.88. This trade represents a 3.50% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Zabi Nowaid sold 42,090 shares of the firm's stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $12.00, for a total value of $505,080.00. Following the transaction, the general counsel owned 1,007,047 shares of the company's stock, valued at $12,084,564. This trade represents a 4.01% 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 172,605 shares of company stock worth $1,745,843 in the last three months. 0.80% of the stock is owned by company insiders.

Hedge Funds Weigh In On Marathon Digital

A number of hedge funds and other institutional investors have recently bought and sold shares of MARA. Hollencrest Capital Management boosted its holdings in Marathon Digital by 2,407.4% during the 3rd quarter. Hollencrest Capital Management now owns 1,354 shares of the business services provider's stock valued at $25,000 after acquiring an additional 1,300 shares during the period. Ascentis Independent Advisors purchased a new position in shares of Marathon Digital in the 1st quarter valued at about $28,000. Bessemer Group Inc. boosted its stake in shares of Marathon Digital by 56.8% in the 3rd quarter. Bessemer Group Inc. now owns 1,819 shares of the business services provider's stock valued at $33,000 after buying an additional 659 shares during the period. Bogart Wealth LLC boosted its stake in shares of Marathon Digital by 4,345.1% in the 1st 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 period. Finally, Eurizon Capital SGR S.p.A. purchased a new position in shares of Marathon Digital in the 4th quarter valued at about $36,000. 44.53% of the stock is currently owned by hedge funds and other 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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