Marathon Digital (NASDAQ:MARA) Stock Price Down 5.1% - Time to Sell?

Key Points

• Marathon Digital shares fell 5.1% in midday trading, hitting a low and last price of $12.12, with volume running about 22% above the average session. The move came after the stock closed the prior day at $12.77.
• Analyst sentiment remains mixed but slightly positive overall, with a consensus rating of “Moderate Buy” and an average price target of $18.50. However, some firms recently trimmed targets, including Morgan Stanley cutting its target to $5.50 and Cantor Fitzgerald lowering its target to $10.00.
• Insiders have been selling shares, including the CEO and a director, while institutional investors still hold a large stake in the company. Insiders own just 0.97% of the stock, versus 44.53% held by institutions and hedge funds.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report)'s stock price was down 5.1% during mid-day trading on Friday . The company traded as low as $12.12 and last traded at $12.12. Approximately 56,073,559 shares changed hands during mid-day trading, an increase of 22% from the average session volume of 46,090,902 shares. The stock had previously closed at $12.77.

Analyst Ratings Changes

Several equities research analysts have commented on the company. Morgan Stanley lowered their price objective on Marathon Digital from $7.00 to $5.50 and set an "underweight" rating on the stock in a research report on Wednesday, July 8th. Cantor Fitzgerald cut their target price on shares of Marathon Digital from $11.00 to $10.00 and set an "overweight" rating for the company in a report on Thursday, April 9th. Citizens Jmp started coverage on shares of Marathon Digital in a research note on Wednesday, June 24th. They issued a "market outperform" rating and a $24.00 target price for the company. BTIG Research reissued a "buy" rating and set a $27.00 price target on shares of Marathon Digital in a report on Monday, June 1st. Finally, Weiss Ratings lowered shares of Marathon Digital from a "sell (d)" rating to a "sell (d-)" rating in a research report on Tuesday, May 12th. 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 stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $18.50.

Marathon Digital Trading Down 5.1%

The stock has a market cap of $4.62 billion, a PE ratio of -2.12 and a beta of 5.36. 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 company has a 50 day moving average of $13.30 and a two-hundred day moving average of $10.98.

Insiders Place Their Bets

In other news, Director Douglas K. Mellinger sold 7,000 shares of the stock in a transaction that occurred on Monday, June 22nd. The stock was sold at an average price of $16.00, for a total transaction of $112,000.00. Following the transaction, the director owned 231,618 shares in the company, valued at $3,705,888. This trade represents a 2.93% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Frederick G. Thiel sold 27,505 shares of Marathon Digital stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $14.25, for a total transaction of $391,946.25. Following the completion of the sale, the chief executive officer directly owned 4,562,009 shares in the company, valued at $65,008,628.25. This represents a 0.60% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 109,260 shares of company stock valued at $1,452,756 in the last three months. 0.97% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Marathon Digital

A number of large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its position in shares of Marathon Digital by 3.1% in the fourth quarter. Vanguard Group Inc. now owns 46,706,277 shares of the business services provider's stock valued at $419,422,000 after purchasing an additional 1,394,559 shares during the period. State Street Corp raised its position in shares of Marathon Digital by 1.4% during the 2nd quarter. State Street Corp now owns 13,455,176 shares of the business services provider's stock worth $210,977,000 after purchasing an additional 191,380 shares during the last quarter. UBS Group AG lifted its stake in Marathon Digital by 104.1% in the 3rd quarter. UBS Group AG now owns 12,098,686 shares of the business services provider's stock valued at $220,922,000 after buying an additional 6,172,110 shares in the last quarter. Marex Group plc lifted its stake in Marathon Digital by 2.6% in the 4th quarter. Marex Group plc now owns 10,137,713 shares of the business services provider's stock valued at $91,037,000 after buying an additional 259,210 shares in the last quarter. Finally, Geode Capital Management LLC lifted its stake in Marathon Digital by 2.6% in the 4th quarter. Geode Capital Management LLC now owns 9,957,766 shares of the business services provider's stock valued at $89,434,000 after buying an additional 251,674 shares in the last quarter. 44.53% of the stock is currently owned by institutional investors and hedge funds.

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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