Marathon Digital (NASDAQ:MARA) Stock Price Down 6.4% - What's Next?

Key Points

• Marathon Digital shares fell 6.4% on Friday, trading as low as $12.13 after closing at $13.29, with volume below its recent average.
• Analyst sentiment is mixed: the stock currently carries a consensus “Hold” rating and an average price target of $18.50, even as some firms cut or raised their targets and ratings.
• Recent fundamentals were weak, with quarterly EPS of -$4.52 versus expectations of -$0.23 and revenue of $202.31 million below estimates; insiders also sold shares in recent months.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report) traded down 6.4% during mid-day trading on Friday . The company traded as low as $12.13 and last traded at $12.44. 39,651,879 shares were traded during trading, a decline of 15% from the average session volume of 46,819,602 shares. The stock had previously closed at $13.29.

Wall Street Analysts Forecast Growth

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

Marathon Digital Stock Performance

The company has a current ratio of 1.84, a quick ratio of 1.27 and a debt-to-equity ratio of 0.99. The firm's fifty day moving average is $10.11 and its 200 day moving average is $10.69. The company has a market cap of $4.74 billion, a PE ratio of -2.17 and a beta of 5.41.

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

Insider Buying and Selling

In other Marathon Digital news, General Counsel Zabi Nowaid sold 42,090 shares of the business's stock in a transaction that occurred on Friday, April 17th. The stock was sold at an average price of $12.00, for a total transaction of $505,080.00. Following the completion of the sale, the general counsel directly owned 1,007,047 shares in the company, valued at approximately $12,084,564. The trade was a 4.01% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Salman Hassan Khan sold 16,000 shares of the stock in a transaction that occurred on Friday, April 17th. The shares were sold at an average price of $11.68, for a total value of $186,880.00. Following the transaction, the chief financial officer directly owned 441,066 shares of the company's stock, valued at $5,151,650.88. The trade was a 3.50% 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. In the last three months, insiders have sold 172,605 shares of company stock worth $1,745,843. Insiders own 0.80% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MARA. Hollencrest Capital Management grew its holdings in shares of Marathon Digital by 2,407.4% during the third quarter. Hollencrest Capital Management now owns 1,354 shares of the business services provider's stock worth $25,000 after buying an additional 1,300 shares in the last quarter. Ascentis Independent Advisors purchased a new position in shares of Marathon Digital in the first quarter worth about $28,000. Bessemer Group Inc. lifted its stake in shares of Marathon Digital by 56.8% in the third quarter. Bessemer Group Inc. now owns 1,819 shares of the business services provider's stock worth $33,000 after buying an additional 659 shares in the last quarter. Bogart Wealth LLC boosted its position in Marathon Digital by 4,345.1% during the first quarter. Bogart Wealth LLC now owns 4,045 shares of the business services provider's stock worth $33,000 after acquiring an additional 3,954 shares during the last quarter. Finally, Eurizon Capital SGR S.p.A. acquired a new position in Marathon Digital during the fourth quarter worth about $36,000. Hedge funds and other institutional investors own 44.53% of the company's stock.

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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