Marathon Digital (NASDAQ:MARA) Trading 3.6% Higher - What's Next?

Key Points

• Shares rose 3.6% intraday to as high as $9.40 on heavy trading — about 106.2 million shares changed hands, roughly 122% above the average volume.
• Marathon reported a large earnings miss (EPS $(4.52) vs. $(0.23) expected) and revenue of $202.3M vs. $250.7M consensus, leaving the company unprofitable with a negative net margin and ROE.
• Analyst views are mixed — seven Buys, three Holds, two Sells with an average "Hold" and $20 target, but several firms cut targets (e.g., Cantor Fitzgerald to $11, Morgan Stanley underweight at $8); insiders have been selling recently and own about 0.80% while institutions own ~44.5%.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report) shot up 3.6% during mid-day trading on Thursday . The stock traded as high as $9.40 and last traded at $8.58. 106,216,941 shares traded hands during mid-day trading, an increase of 122% from the average session volume of 47,850,965 shares. The stock had previously closed at $8.28.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on MARA. Cantor Fitzgerald dropped their price target on shares of Marathon Digital from $21.00 to $11.00 and set an "overweight" rating on the stock in a research report on Friday, February 27th. Piper Sandler decreased their price objective on shares of Marathon Digital from $26.00 to $16.00 and set an "overweight" rating for the company in a research note on Wednesday, January 14th. Morgan Stanley began coverage on shares of Marathon Digital in a research report on Monday, February 9th. They set an "underweight" rating and a $8.00 target price on the stock. HC Wainwright restated a "neutral" rating on shares of Marathon Digital in a research note on Friday, February 27th. Finally, Weiss Ratings lowered Marathon Digital from a "hold (c-)" rating to a "sell (d)" rating in a report on Friday, March 6th. Seven equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $20.00.

Marathon Digital Stock Up 3.6%

The stock has a 50 day moving average price of $8.89 and a 200 day moving average price of $12.61. 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 company has a market capitalization of $3.26 billion, a P/E ratio of -2.17 and a beta of 5.51.

Marathon Digital (NASDAQ:MARA - Get Free Report) last posted its quarterly earnings results on Thursday, February 26th. The business services provider reported ($4.52) earnings per share 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 the consensus estimate of $250.74 million. Marathon Digital had a negative net margin of 144.58% and a negative return on equity of 19.01%. Marathon Digital's quarterly revenue was down 5.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.24 EPS. Equities research analysts forecast that Marathon Digital Holdings, Inc. will post -1.04 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CFO Salman Hassan Khan sold 16,000 shares of the company'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 $146,880.00. Following the transaction, the chief financial officer owned 343,165 shares in the company, valued at approximately $3,150,254.70. This represents a 4.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Frederick G. Thiel sold 27,505 shares of the stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $9.18, for a total value of $252,495.90. Following the transaction, the chief executive officer directly owned 4,788,954 shares of the company's stock, valued at approximately $43,962,597.72. This trade represents a 0.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 114,515 shares of company stock valued at $1,029,678 over the last three months. Insiders own 0.80% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in MARA. Integrated Wealth Concepts LLC raised its stake in Marathon Digital by 9.8% in the 1st quarter. Integrated Wealth Concepts LLC now owns 11,073 shares of the business services provider's stock valued at $127,000 after acquiring an additional 991 shares during the period. NewEdge Advisors LLC grew its stake in Marathon Digital by 65.3% in the 1st quarter. NewEdge Advisors LLC now owns 7,672 shares of the business services provider's stock valued at $88,000 after buying an additional 3,032 shares in the last quarter. United Services Automobile Association raised its holdings in Marathon Digital by 8.2% during the 1st quarter. United Services Automobile Association now owns 20,634 shares of the business services provider's stock valued at $257,000 after acquiring an additional 1,569 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in Marathon Digital by 11.0% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 643,311 shares of the business services provider's stock valued at $7,398,000 after acquiring an additional 63,903 shares during the period. Finally, Envestnet Asset Management Inc. purchased a new stake in shares of Marathon Digital during the second quarter worth $183,000. 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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