Marathon Digital (NASDAQ:MARA) Trading 6% Higher - Should You Buy?

Key Points

• Marathon Digital traded up about 6% intraday to $9.50 on Wednesday with roughly 49.5 million shares changing hands, modestly above average volume.
• The company reported a heavy quarterly miss—EPS of ($4.52) vs. ($0.23) expected and revenue of $202.3M vs. $250.7M expected—resulting in negative margins and ROE.
• Analyst sentiment is mixed: seven Buys, three Holds and two Sells with a MarketBeat average rating of 'Hold' and an average price target of $20, although several firms have recently cut targets or downgraded the stock.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report) traded up 6% during trading on Wednesday . The stock traded as high as $9.77 and last traded at $9.50. 49,490,010 shares changed hands during mid-day trading, an increase of 5% from the average session volume of 47,274,938 shares. The stock had previously closed at $8.96.

Analysts Set New Price Targets

Several research analysts have recently commented on the company. Weiss Ratings downgraded Marathon Digital from a "hold (c-)" rating to a "sell (d)" rating in a research note on Friday, March 6th. Cantor Fitzgerald decreased their price objective on Marathon Digital from $21.00 to $11.00 and set an "overweight" rating on the stock in a research note on Friday, February 27th. Morgan Stanley started coverage on Marathon Digital in a research report on Monday, February 9th. They set an "underweight" rating and a $8.00 target price for the company. Piper Sandler cut 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. Finally, HC Wainwright reiterated a "neutral" rating on shares of Marathon Digital in a research report on Friday, February 27th. Seven research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Hold" and an average price target of $20.00.

Marathon Digital Price Performance

The company has a debt-to-equity ratio of 0.92, a current ratio of 1.27 and a quick ratio of 1.27. The firm has a 50-day moving average of $8.49 and a 200-day moving average of $12.05. The stock has a market cap of $3.61 billion, a PE ratio of -2.40 and a beta of 5.29.

Marathon Digital (NASDAQ:MARA - Get Free Report) last released 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 19.01% and a negative net margin of 144.58%.The business had revenue of $202.31 million for the quarter, compared to analysts' expectations of $250.74 million. During the same quarter in the prior year, the business posted $1.24 EPS. The business's revenue for the quarter was down 5.6% compared to the same quarter last year. Research analysts predict that Marathon Digital Holdings, Inc. will post -1.04 EPS for the current year.

Insider Activity at Marathon Digital

In other Marathon Digital news, CFO Salman Hassan Khan sold 16,000 shares of the firm'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 transaction of $146,880.00. Following the completion of the transaction, the chief financial officer owned 343,165 shares in the company, valued at $3,150,254.70. This trade represents a 4.45% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CEO Frederick G. Thiel sold 27,505 shares of the firm's 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 $252,495.90. Following the transaction, the chief executive officer owned 4,788,954 shares of the company's stock, valued at $43,962,597.72. This represents a 0.57% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 114,515 shares of company stock valued at $1,029,678 in the last 90 days. 0.80% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Marathon Digital

Several institutional investors have recently added to or reduced their stakes in MARA. Hollencrest Capital Management grew its holdings in Marathon Digital by 2,407.4% during the 3rd quarter. Hollencrest Capital Management now owns 1,354 shares of the business services provider's stock valued at $25,000 after buying an additional 1,300 shares in the last quarter. Bessemer Group Inc. grew its holdings in 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. Eurizon Capital SGR S.p.A. purchased a new position in Marathon Digital during the 4th quarter valued at approximately $36,000. Hantz Financial Services Inc. grew its holdings in Marathon Digital by 344.8% during the 4th quarter. Hantz Financial Services Inc. now owns 5,022 shares of the business services provider's stock valued at $45,000 after buying an additional 3,893 shares in the last quarter. Finally, Salomon & Ludwin LLC purchased a new position in shares of Marathon Digital in the 3rd quarter worth approximately $47,000. 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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