Marathon Digital (NASDAQ:MARA) Stock Price Up 5.3% - Here's What Happened

Key Points

• Shares rose 5.3% on Monday, trading as high as $9.25 and last at $8.91 on roughly 46.8 million shares, near its average daily volume.
• Quarterly results were a major miss: Marathon reported EPS of ($4.52) vs. ($0.23) expected and revenue of $202.3M vs. $250.7M, leaving the company with negative margins and a -1.04 EPS outlook for the year.
• Analyst sentiment and insider activity are mixed: the consensus rating is "Hold" with a $20 target after several price-target cuts, while insiders (including the CEO and CFO) have sold shares recently and now own about 0.8% of the stock.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report) was up 5.3% on Monday . The stock traded as high as $9.25 and last traded at $8.91. Approximately 46,805,084 shares changed hands during mid-day trading, a decline of 1% from the average daily volume of 47,074,199 shares. The stock had previously closed at $8.46.

Analysts Set New Price Targets

Several equities analysts have commented on MARA shares. HC Wainwright reaffirmed a "neutral" rating on shares of Marathon Digital in a report on Friday, February 27th. Compass Point upgraded Marathon Digital from a "neutral" rating to a "buy" rating and set a $30.00 price objective on the stock in a research report on Monday, November 24th. Piper Sandler reduced their target price on Marathon Digital from $26.00 to $16.00 and set an "overweight" rating for the company in a research report on Wednesday, January 14th. JPMorgan Chase & Co. lowered their price target on shares of Marathon Digital from $20.00 to $13.00 and set an "overweight" rating on the stock in a report on Monday, November 24th. Finally, Cantor Fitzgerald dropped their price objective on shares of Marathon Digital from $21.00 to $11.00 and set an "overweight" rating for the company in a research note on Friday, February 27th. Seven research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, Marathon Digital presently has a consensus rating of "Hold" and a consensus target price of $20.00.

Marathon Digital Price Performance

The company has a 50-day moving average of $9.04 and a 200 day moving average of $12.73. The company has a debt-to-equity ratio of 0.92, a quick ratio of 1.27 and a current ratio of 1.27. The firm has a market cap of $3.39 billion, a P/E ratio of -2.25 and a beta of 5.51.

Marathon Digital (NASDAQ:MARA - Get Free Report) last released 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 analyst estimates of $250.74 million. Marathon Digital had a negative return on equity of 19.01% and a negative net margin of 144.58%.The business's revenue was down 5.6% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.24 earnings per share. On average, sell-side analysts anticipate that Marathon Digital Holdings, Inc. will post -1.04 EPS for the current year.

Insider Transactions at Marathon Digital

In other news, CFO Salman Hassan Khan sold 16,000 shares of Marathon Digital stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $9.18, for a total value of $146,880.00. Following the completion of the transaction, the chief financial officer owned 343,165 shares in the company, valued at approximately $3,150,254.70. The trade was a 4.45% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Frederick G. Thiel sold 27,505 shares of the business's stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $9.18, for a total value of $252,495.90. Following the completion of the transaction, the chief executive officer directly owned 4,788,954 shares in the company, valued at $43,962,597.72. The trade was a 0.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 114,515 shares of company stock worth $1,029,678. Company insiders own 0.80% of the company's stock.

Hedge Funds Weigh In On Marathon Digital

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Hollencrest Capital Management increased its position in Marathon Digital by 2,407.4% in the 3rd quarter. Hollencrest Capital Management now owns 1,354 shares of the business services provider's stock valued at $25,000 after acquiring an additional 1,300 shares in the last quarter. Bessemer Group Inc. grew 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 purchasing an additional 659 shares during the last quarter. Estabrook Capital Management acquired a new stake in shares of Marathon Digital in the second quarter valued at approximately $31,000. Salomon & Ludwin LLC bought a new position in Marathon Digital in the 3rd quarter worth approximately $47,000. Finally, Danske Bank A S acquired a new position in Marathon Digital during the 3rd quarter worth $55,000. Institutional investors and hedge funds 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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