Marathon Digital (NASDAQ:MARA) Stock Price Down 3.5% - Should You Sell?

Key Points

• Marathon Digital's stock price fell 3.5% to $15.48 during mid-day trading, with a significant decline in trading volume of 74% compared to the average session.
• Several analysts have given Marathon Digital a Moderate Buy rating, with the average price target set at $24.22, indicating potential for recovery despite the recent decline.
• In its latest earnings report, Marathon Digital reported $1.84 earnings per share, significantly exceeding expectations, alongside a year-over-year revenue increase of 64.0%.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report) dropped 3.5% during trading on Tuesday . The company traded as low as $15.40 and last traded at $15.48. Approximately 11,117,840 shares were traded during mid-day trading, a decline of 74% from the average daily volume of 42,486,094 shares. The stock had previously closed at $16.04.

Analysts Set New Price Targets

MARA has been the subject of a number of research reports. Compass Point raised Marathon Digital from a "sell" rating to a "neutral" rating and lifted their target price for the stock from $9.50 to $18.00 in a report on Friday, July 25th. Rosenblatt Securities reiterated a "buy" rating and issued a $20.00 price objective on shares of Marathon Digital in a research note on Wednesday, July 30th. HC Wainwright restated a "buy" rating and set a $28.00 target price on shares of Marathon Digital in a research report on Thursday, April 24th. Cantor Fitzgerald increased their price target on Marathon Digital from $34.00 to $39.00 and gave the stock an "overweight" rating in a research report on Monday, July 28th. Finally, Piper Sandler raised their price objective on Marathon Digital from $23.00 to $26.00 and gave the stock an "overweight" rating in a research note on Monday, July 21st. Four research analysts have rated the stock with a hold rating and six have given a buy rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $24.22.

Marathon Digital Price Performance

The stock has a market cap of $5.70 billion, a P/E ratio of 13.85 and a beta of 6.24. The company's 50 day moving average price is $16.53 and its 200-day moving average price is $15.26. The company has a quick ratio of 0.54, a current ratio of 0.54 and a debt-to-equity ratio of 0.47.

Marathon Digital (NASDAQ:MARA - Get Free Report) last posted its quarterly earnings data on Tuesday, July 29th. The business services provider reported $1.84 EPS for the quarter, beating analysts' consensus estimates of ($0.29) by $2.13. The company had revenue of $238.50 million for the quarter, compared to analyst estimates of $212.25 million. Marathon Digital had a net margin of 85.02% and a negative return on equity of 2.11%. The company's quarterly revenue was up 64.0% on a year-over-year basis. During the same period in the prior year, the firm posted ($0.72) EPS. As a group, sell-side analysts expect that Marathon Digital Holdings, Inc. will post -1.04 earnings per share for the current year.

Insider Activity

In other Marathon Digital news, CFO Salman Hassan Khan sold 34,732 shares of the firm's stock in a transaction that occurred on Tuesday, July 15th. The stock was sold at an average price of $19.05, for a total value of $661,644.60. Following the completion of the sale, the chief financial officer owned 324,572 shares of the company's stock, valued at approximately $6,183,096.60. This trade represents a 9.67% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Frederick G. Thiel sold 27,505 shares of the stock in a transaction that occurred on Wednesday, July 16th. The stock was sold at an average price of $19.52, for a total value of $536,897.60. Following the completion of the sale, the chief executive officer directly owned 3,946,504 shares of the company's stock, valued at approximately $77,035,758.08. This trade represents a 0.69% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 170,680 shares of company stock valued at $2,896,441. 0.80% of the stock is currently owned by company insiders.

Institutional Trading of Marathon Digital

Large investors have recently bought and sold shares of the company. American Century Companies Inc. boosted its holdings in shares of Marathon Digital by 55.7% in the first quarter. American Century Companies Inc. now owns 6,289,953 shares of the business services provider's stock worth $72,334,000 after acquiring an additional 2,250,082 shares during the period. Westfield Capital Management Co. LP bought a new stake in shares of Marathon Digital during the first quarter valued at about $14,810,000. Price T Rowe Associates Inc. MD lifted its holdings in shares of Marathon Digital by 192.4% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 1,897,200 shares of the business services provider's stock worth $31,817,000 after buying an additional 1,248,292 shares in the last quarter. Vanguard Group Inc. boosted its position in shares of Marathon Digital by 2.7% in the first quarter. Vanguard Group Inc. now owns 39,811,453 shares of the business services provider's stock valued at $457,832,000 after acquiring an additional 1,028,512 shares during the period. Finally, Nuveen LLC bought a new stake in Marathon Digital during the 1st quarter worth approximately $11,514,000. 44.53% of the stock is owned by hedge funds and other institutional investors.

Marathon Digital Company Profile

MARA Holdings, Inc operates as a digital asset technology company that mines digital assets with a focus on the bitcoin ecosystem in United States. The company was formerly known as Marathon Digital Holdings, Inc and changed its name to MARA Holdings, Inc in August 2024. MARA Holdings, Inc was incorporated in 2010 and is headquartered in Fort Lauderdale, Florida.