Marathon Digital (NASDAQ:MARA) Trading 6.4% Higher - Time to Buy?

Key Points

• Shares jumped 6.4% on Friday to as high as $10.03 on heavy trading (~73.1M shares, about 54% above the average), after closing the prior session at $8.76.
• Marathon reported a large quarterly earnings miss, posting ($4.52) EPS vs. ($0.23) expected and revenue of $202.3M vs. $250.7M expected, with a deeply negative net margin and return on equity.
• Analysts have trimmed targets and mixed ratings—several recent cuts (e.g., JPMorgan to $13, Piper to $16, Cantor to $11) while Morgan Stanley initiated at “underweight” ($8); the consensus rating is currently “Hold” with an average target of $20.00.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report)'s share price was up 6.4% during trading on Friday . The stock traded as high as $10.03 and last traded at $9.32. Approximately 73,056,167 shares were traded during mid-day trading, an increase of 54% from the average daily volume of 47,430,355 shares. The stock had previously closed at $8.76.

Analyst Ratings Changes

Several equities analysts have recently issued reports on the company. JPMorgan Chase & Co. lowered their price target on Marathon Digital from $20.00 to $13.00 and set an "overweight" rating for the company in a research report on Monday, November 24th. Piper Sandler reduced 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 assumed coverage on shares of Marathon Digital in a report on Monday, February 9th. They issued an "underweight" rating and a $8.00 target price for the company. Compass Point raised shares of Marathon Digital from a "neutral" rating to a "buy" rating and set a $30.00 target price for the company in a report on Monday, November 24th. Finally, Cantor Fitzgerald cut their price target on shares of Marathon Digital from $21.00 to $11.00 and set an "overweight" rating on the stock in a report on Friday, February 27th. Seven analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $20.00.

Marathon Digital Price Performance

The firm has a 50-day moving average of $9.18 and a 200 day moving average of $13.06. The company has a market capitalization of $3.54 billion, a PE ratio of -2.35 and a beta of 5.51. The company has a debt-to-equity ratio of 0.92, a current ratio of 1.27 and a quick ratio of 1.27.

Marathon Digital (NASDAQ:MARA - Get Free Report) last announced its quarterly earnings results on Thursday, February 26th. The business services provider reported ($4.52) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.23) by ($4.29). Marathon Digital had a negative net margin of 144.58% and a negative return on equity of 19.01%. The company had revenue of $202.31 million for the quarter, compared to analysts' expectations of $250.74 million. During the same period in the previous year, the business earned $1.24 EPS. The business's revenue was down 5.6% compared to the same quarter last year. As a group, research analysts anticipate that Marathon Digital Holdings, Inc. will post -1.04 earnings per share for the current fiscal year.

Insider Transactions at Marathon Digital

In related news, CEO Frederick G. Thiel sold 27,505 shares of the business's stock in a transaction that occurred on Tuesday, January 20th. The shares were sold at an average price of $10.80, for a total transaction of $297,054.00. Following the completion of the sale, the chief executive officer directly owned 3,517,566 shares in the company, valued at approximately $37,989,712.80. The trade was a 0.78% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Salman Hassan Khan sold 34,732 shares of the company's stock in a transaction that occurred on Monday, December 15th. The shares were sold at an average price of $11.48, for a total transaction of $398,723.36. Following the sale, the chief financial officer directly owned 248,566 shares of the company's stock, valued at approximately $2,853,537.68. This represents a 12.26% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 133,247 shares of company stock worth $1,325,255. 0.80% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Marathon Digital

Hedge funds and other institutional investors have recently modified their holdings of the stock. Bessemer Group Inc. increased its position in Marathon Digital by 56.8% in the third quarter. Bessemer Group Inc. now owns 1,819 shares of the business services provider's stock worth $33,000 after buying an additional 659 shares in the last quarter. Archer Investment Corp lifted its position in shares of Marathon Digital by 10.9% during the 2nd quarter. Archer Investment Corp now owns 7,650 shares of the business services provider's stock valued at $120,000 after buying an additional 750 shares in the last quarter. Smartleaf Asset Management LLC grew its stake 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 acquiring an additional 799 shares during the period. Vanguard Personalized Indexing Management LLC increased 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 acquiring an additional 882 shares in the last quarter. Finally, Ameritas Investment Partners Inc. increased its holdings in Marathon Digital by 2.7% in the 2nd quarter. Ameritas Investment Partners Inc. now owns 35,443 shares of the business services provider's stock worth $556,000 after acquiring an additional 934 shares in the last quarter. 44.53% of the stock is currently 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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