Marathon Digital (NASDAQ:MARA) Stock Price Down 4.5% - Time to Sell?

Key Points

• Marathon Digital shares fell 4.5% to $9.21 on elevated trading volume, with the stock well below its 50-day and 200-day moving averages.
• The company reported a significant quarterly loss, posting adjusted EPS of negative $1.60 versus expectations of positive $0.17, while revenue declined 26.7% year over year to $174.88 million.
• Analyst sentiment remains mixed but leans positive, with a consensus “Moderate Buy” rating and an $18.78 price target; however, some analysts maintain sell or underweight ratings, and insiders have recently sold shares.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report)'s stock price dropped 4.5% on Thursday . The stock traded as low as $9.17 and last traded at $9.21. Approximately 32,650,439 shares were traded during trading, a decline of 28% from the average daily volume of 45,590,855 shares. The stock had previously closed at $9.64.

Wall Street Analysts Forecast Growth

MARA has been the topic of a number of recent analyst reports. Morgan Stanley increased their price target on shares of Marathon Digital from $5.50 to $6.00 and gave the stock an "underweight" rating in a report on Thursday. Weiss Ratings reiterated a "sell (d-)" rating on shares of Marathon Digital in a research report on Friday, August 7th. Rosenblatt Securities reissued a "buy" rating and set a $15.00 target price on shares of Marathon Digital in a research note on Friday, August 7th. Piper Sandler dropped their target price on Marathon Digital from $16.00 to $13.00 and set an "overweight" rating on the stock in a research report on Friday, July 17th. Finally, Citizens Jmp started coverage on Marathon Digital in a research report on Wednesday, June 24th. They set a "market outperform" rating and a $24.00 target price on the stock. Eight 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 MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $18.78.

Marathon Digital Stock Down 4.5%

The stock has a market cap of $3.56 billion, a PE ratio of -1.01 and a beta of 5.40. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 1.15. The business has a 50-day moving average price of $12.53 and a 200-day moving average price of $11.01.

Marathon Digital (NASDAQ:MARA - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The business services provider reported ($1.60) EPS for the quarter, missing the consensus estimate of $0.17 by ($1.77). The company had revenue of $174.88 million during the quarter, compared to analysts' expectations of $209.44 million. Marathon Digital had a negative return on equity of 26.05% and a negative net margin of 429.71%.Marathon Digital's revenue was down 26.7% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.84 EPS. As a group, analysts forecast that Marathon Digital Holdings, Inc. will post -2.28 earnings per share 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 Wednesday, June 17th. The shares were sold at an average price of $14.25, for a total value of $228,000.00. Following the transaction, the chief financial officer directly owned 409,066 shares of the company's stock, valued at approximately $5,829,190.50. This trade represents a 3.76% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 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 transaction, the general counsel directly owned 963,768 shares in the company, valued at $13,733,694. This represents a 0.72% 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 have sold 109,260 shares of company stock worth $1,452,756 in the last ninety days. 0.97% of the stock is owned by company insiders.

Hedge Funds Weigh In On Marathon Digital

Hedge funds and other institutional investors have recently made changes to their positions in the company. Hennion & Walsh Asset Management Inc. boosted its stake in shares of Marathon Digital by 24.4% in the second quarter. Hennion & Walsh Asset Management Inc. now owns 50,275 shares of the business services provider's stock worth $698,000 after acquiring an additional 9,873 shares during the last quarter. GAMMA Investing LLC raised its stake in Marathon Digital by 20.0% in the 2nd quarter. GAMMA Investing LLC now owns 25,506 shares of the business services provider's stock valued at $354,000 after purchasing an additional 4,246 shares during the last quarter. Moody National Bank Trust Division acquired a new position in Marathon Digital in the 2nd quarter valued at $1,858,000. CoreCap Advisors LLC lifted its holdings in Marathon Digital by 128.0% in the 2nd quarter. CoreCap Advisors LLC now owns 3,651 shares of the business services provider's stock valued at $51,000 after purchasing an additional 2,050 shares in the last quarter. Finally, Versant Capital Management Inc lifted its holdings in Marathon Digital by 257.3% in the 2nd quarter. Versant Capital Management Inc now owns 4,966 shares of the business services provider's stock valued at $69,000 after purchasing an additional 3,576 shares in the last quarter. Hedge funds and other institutional investors own 44.53% of the company's stock.

About Marathon Digital

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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