Marathon Digital (NASDAQ:MARA) Trading 4.2% Higher - Here's What Happened

Key Points

• Marathon Digital shares rose 4.2% on Thursday, trading as high as $13.70 on heavier-than-normal volume before finishing at $13.29.
• Analyst sentiment remains mixed: the stock has a consensus Hold rating with an average price target of $18.50, even as some firms recently raised or cut targets and ratings.
• The company’s latest earnings were weak, with a much larger-than-expected loss and revenue below estimates; insiders also sold shares in recent months under pre-arranged trading plans.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report)'s stock price traded up 4.2% on Thursday . The stock traded as high as $13.70 and last traded at $13.29. 51,048,428 shares traded hands during mid-day trading, an increase of 9% from the average session volume of 46,879,781 shares. The stock had previously closed at $12.75.

Analyst Ratings Changes

MARA has been the subject of several research reports. Weiss Ratings cut shares of Marathon Digital from a "sell (d)" rating to a "sell (d-)" rating in a research note on Tuesday. HC Wainwright restated a "neutral" rating on shares of Marathon Digital in a report on Friday, February 27th. Rosenblatt Securities upped their price target on Marathon Digital from $11.00 to $15.00 and gave the company a "buy" rating in a research report on Friday, May 1st. Piper Sandler cut their price target on Marathon Digital from $26.00 to $16.00 and set an "overweight" rating for the company in a report on Wednesday, January 14th. Finally, Cantor Fitzgerald reduced their price objective 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 research 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's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $18.50.

Marathon Digital Trading Up 4.2%

The company has a quick ratio of 1.27, a current ratio of 1.84 and a debt-to-equity ratio of 0.99. The company's 50-day moving average is $10.02 and its 200-day moving average is $10.74. The stock has a market capitalization of $5.07 billion, a price-to-earnings ratio of -2.32 and a beta of 5.41.

Marathon Digital (NASDAQ:MARA - Get Free Report) last posted its 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 firm had revenue of $202.31 million during the quarter, compared to analyst estimates 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% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.24 earnings per share. Research analysts anticipate that Marathon Digital Holdings, Inc. will post -1.67 earnings per share for the current fiscal year.

Insider Activity at Marathon Digital

In other news, CFO Salman Hassan Khan sold 16,000 shares of the company's stock in a transaction on Friday, April 17th. The stock was sold at an average price of $11.68, for a total value of $186,880.00. Following the transaction, the chief financial officer owned 441,066 shares of the company's stock, valued at $5,151,650.88. This represents a 3.50% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Zabi Nowaid sold 42,090 shares of the stock in a transaction on Friday, April 17th. The stock was sold at an average price of $12.00, for a total value of $505,080.00. Following the transaction, the general counsel owned 1,007,047 shares of the company's stock, valued at approximately $12,084,564. This represents a 4.01% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over 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

Several hedge funds have recently bought and sold shares of the stock. Bessemer Group Inc. raised its stake in shares of Marathon Digital by 56.8% in the 3rd quarter. Bessemer Group Inc. now owns 1,819 shares of the business services provider's stock valued at $33,000 after acquiring an additional 659 shares during the period. Smartleaf Asset Management LLC boosted 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 worth $108,000 after purchasing an additional 799 shares during the period. Vanguard Personalized Indexing Management LLC boosted its position in shares of Marathon Digital by 3.1% during 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 during the period. United Capital Management of KS Inc. increased its holdings 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 valued at $731,000 after purchasing an additional 937 shares during the last quarter. Finally, CI Investments Inc. increased its holdings in Marathon Digital by 7.6% in the 1st quarter. CI Investments Inc. now owns 13,520 shares of the business services provider's stock valued at $110,000 after purchasing an additional 957 shares during the last quarter. 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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