Marathon Digital (NASDAQ:MARA) Stock Price Up 5.7% - Here's Why

Key Points

• Marathon Digital shares rose 5.7% on Wednesday, trading as high as $13.50 after closing at $12.44 the day before. Trading volume was also above average at about 51.1 million shares.
• Analyst sentiment remains mixed, with several firms adjusting targets and ratings recently. The current consensus from MarketBeat is a Hold rating with a $18.38 price target.
• The company’s latest earnings report was well below expectations, posting a $4.52 loss per share versus an expected $0.23 loss and revenue of $202.31 million versus the $250.74 million estimate. Insiders have also been selling shares, including the general counsel and CEO.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report) rose 5.7% during trading on Wednesday . The stock traded as high as $13.50 and last traded at $13.15. Approximately 51,058,254 shares changed hands during mid-day trading, an increase of 9% from the average daily volume of 46,631,281 shares. The stock had previously closed at $12.44.

Analysts Set New Price Targets

Several research analysts have issued reports on the company. Weiss Ratings cut Marathon Digital from a "sell (d)" rating to a "sell (d-)" rating in a research report on Tuesday, May 12th. HC Wainwright reissued a "neutral" rating on shares of Marathon Digital in a research report on Friday, February 27th. Morgan Stanley dropped their target price on Marathon Digital from $8.50 to $7.00 and set an "underweight" rating on the stock in a research report on Tuesday. Rosenblatt Securities raised their target price on Marathon Digital from $11.00 to $15.00 and gave the stock a "buy" rating in a research report on Friday, May 1st. Finally, Cantor Fitzgerald dropped their target price on Marathon Digital from $11.00 to $10.00 and set an "overweight" rating on the stock in a research report on Thursday, April 9th. Seven investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Marathon Digital presently has a consensus rating of "Hold" and a consensus price target of $18.38.

Marathon Digital Price Performance

The firm has a market capitalization of $5.01 billion, a PE ratio of -2.30 and a beta of 5.41. The company has a debt-to-equity ratio of 0.99, a current ratio of 1.84 and a quick ratio of 1.84. The firm has a 50-day simple moving average of $10.33 and a 200-day simple moving average of $10.55.

Marathon Digital (NASDAQ:MARA - Get Free Report) last announced its earnings results 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). Marathon Digital had a negative return on equity of 23.20% and a negative net margin of 234.83%.The firm had revenue of $202.31 million during the quarter, compared to analysts' expectations of $250.74 million. During the same period in the previous year, the business posted $1.24 earnings per share. The company's revenue for the quarter was down 5.6% on a year-over-year basis. As a group, equities analysts forecast that Marathon Digital Holdings, Inc. will post -1.67 earnings per share for the current year.

Insider Activity

In other news, General Counsel Zabi Nowaid sold 42,090 shares of Marathon Digital stock in a transaction dated Friday, April 17th. The stock was sold at an average price of $12.00, for a total transaction of $505,080.00. Following the transaction, the general counsel directly owned 1,007,047 shares of the company's stock, valued at $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 available at this hyperlink. 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 dated Friday, April 17th. The shares were sold at an average price of $11.68, for a total value of $321,258.40. Following the transaction, the chief executive officer directly owned 4,725,219 shares in the company, valued at approximately $55,190,557.92. The trade was a 0.58% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 129,100 shares of company stock valued at $1,412,594 in the last ninety days. Corporate insiders own 0.80% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Bessemer Group Inc. lifted its position in shares of Marathon Digital by 56.8% during the 3rd 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 in the last quarter. Smartleaf Asset Management LLC lifted its position in shares of Marathon Digital by 15.9% during the 3rd quarter. Smartleaf Asset Management LLC now owns 5,812 shares of the business services provider's stock valued at $108,000 after buying an additional 799 shares in the last quarter. Vanguard Personalized Indexing Management LLC lifted its holdings in Marathon Digital by 3.1% in the 3rd quarter. Vanguard Personalized Indexing Management LLC now owns 29,389 shares of the business services provider's stock worth $537,000 after purchasing an additional 882 shares in the last quarter. United Capital Management of KS Inc. boosted its stake in Marathon Digital by 2.4% in the 3rd quarter. United Capital Management of KS Inc. now owns 40,054 shares of the business services provider's stock worth $731,000 after purchasing an additional 937 shares during the period. Finally, CI Investments Inc. grew its holdings in Marathon Digital by 7.6% during the 1st quarter. CI Investments Inc. now owns 13,520 shares of the business services provider's stock valued at $110,000 after buying an additional 957 shares in the last quarter. 44.53% of the stock is owned by hedge funds and other institutional investors.

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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