Marathon Digital (NASDAQ:MARA) Stock Price Down 4.1% Following Analyst Downgrade

Key Points

• Shares fell 4.1% to about $10.66 after Piper Sandler cut its price target from $26 to $16 (while keeping an "overweight" rating), with volume ~46.6M shares—about 17% above average.
• Significant insider selling: the CFO and CEO recently sold blocks of stock, insiders sold 182,979 shares over the last 90 days and now own roughly 0.80% of the company.
• Earnings and outlook missed expectations: Marathon reported Q EPS of -$0.32 vs. -$0.26 expected and revenue slightly below estimates, and analysts forecast -$1.04 EPS for the fiscal year despite a consensus "Moderate Buy" and an average price target of $22.44.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report) shares dropped 4.1% on Thursday after Piper Sandler lowered their price target on the stock from $26.00 to $16.00. Piper Sandler currently has an overweight rating on the stock. Marathon Digital traded as low as $10.64 and last traded at $10.66. Approximately 46,604,809 shares changed hands during mid-day trading, an increase of 17% from the average daily volume of 39,983,734 shares. The stock had previously closed at $11.11.

Several other analysts have also recently weighed in on the stock. JPMorgan Chase & Co. lowered their price objective on shares of Marathon Digital from $20.00 to $13.00 and set an "overweight" rating on the stock in a research report on Monday, November 24th. Guggenheim assumed coverage on Marathon Digital in a research report on Tuesday, October 21st. They set a "neutral" rating on the stock. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Marathon Digital in a research note on Monday, December 29th. Rosenblatt Securities reduced their price objective on Marathon Digital from $25.00 to $22.00 and set a "buy" rating on the stock in a research report on Wednesday, November 5th. Finally, Compass Point upgraded Marathon Digital from a "neutral" rating to a "buy" rating and set a $30.00 target price for the company in a research report on Monday, November 24th. Eight equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $22.44.

Insider Activity

In other Marathon Digital news, CFO Salman Hassan Khan sold 34,732 shares of the stock in a transaction on Monday, December 15th. The shares were sold at an average price of $11.48, for a total transaction of $398,723.36. Following the completion of the sale, the chief financial officer owned 248,566 shares of the company's stock, valued at $2,853,537.68. This represents a 12.26% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Frederick G. Thiel sold 27,505 shares of the firm's stock in a transaction on Wednesday, December 17th. The stock was sold at an average price of $10.77, for a total transaction of $296,228.85. Following the completion of the sale, the chief executive officer directly owned 3,555,489 shares in the company, valued at approximately $38,292,616.53. This trade represents a 0.77% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 182,979 shares of company stock valued at $2,476,153. 0.80% of the stock is currently owned by company insiders.

Institutional Trading of Marathon Digital

Several large investors have recently modified their holdings of the business. Hollencrest Capital Management raised its position 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 purchasing an additional 1,300 shares during the last quarter. Bessemer Group Inc. increased its stake 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 valued at $33,000 after buying an additional 659 shares during the period. Fifth Third Bancorp increased its stake in shares of Marathon Digital by 59.9% during the second quarter. Fifth Third Bancorp now owns 1,824 shares of the business services provider's stock valued at $29,000 after buying an additional 683 shares during the period. Estabrook Capital Management bought a new position in shares of Marathon Digital during the second quarter valued at approximately $31,000. Finally, Salomon & Ludwin LLC purchased a new stake in Marathon Digital in the third quarter worth $47,000. 44.53% of the stock is owned by institutional investors.

Marathon Digital Trading Down 4.1%

The company has a quick ratio of 2.09, a current ratio of 2.09 and a debt-to-equity ratio of 0.63. The firm's fifty day moving average is $11.27 and its two-hundred day moving average is $15.36. The firm has a market cap of $4.03 billion, a P/E ratio of 5.92 and a beta of 5.34.

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

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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