Marathon Digital (NASDAQ:MARA) Trading 7.9% Higher - Still a Buy?

Key Points

• Marathon Digital Holdings, Inc. (NASDAQ:MARA) saw its stock price rise by 7.9% to $17.40, despite a 55% decline in trading volume compared to average levels.
• Analysts remain optimistic, with a consensus rating of "Moderate Buy" and a target price of $24.30, with multiple firms setting targets between $20.00 and $27.00.
• The company reported earnings exceeding expectations, with a 64.0% year-over-year revenue increase, leading to an EPS of $1.84 for the last quarter.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report) was up 7.9% on Monday . The company traded as high as $17.53 and last traded at $17.40. Approximately 20,401,580 shares were traded during trading, a decline of 55% from the average daily volume of 45,419,426 shares. The stock had previously closed at $16.13.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on MARA shares. BTIG Research reissued a "buy" rating and set a $27.00 price target on shares of Marathon Digital in a research report on Friday, September 5th. Macquarie boosted their price target on Marathon Digital from $19.00 to $26.00 and gave the company an "outperform" rating in a research note on Wednesday, July 30th. Piper Sandler boosted their price target on Marathon Digital from $23.00 to $26.00 and gave the company an "overweight" rating in a research note on Monday, July 21st. JPMorgan Chase & Co. cut their price target on Marathon Digital from $22.00 to $20.00 and set an "overweight" rating for the company in a research note on Friday. Finally, Rosenblatt Securities restated a "buy" rating and set a $20.00 price objective on shares of Marathon Digital in a research report on Wednesday, July 30th. Seven research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $24.30.

Marathon Digital Stock Performance

The stock has a market capitalization of $6.86 billion, a price-to-earnings ratio of 16.69 and a beta of 6.36. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.54 and a current ratio of 0.54. The stock has a fifty day simple moving average of $16.38 and a two-hundred day simple moving average of $15.27.

Marathon Digital (NASDAQ:MARA - Get Free Report) last released its earnings results on Tuesday, July 29th. The business services provider reported $1.84 EPS for the quarter, topping the consensus estimate of ($0.29) by $2.13. The business had revenue of $238.50 million during the quarter, compared to analysts' expectations of $212.25 million. Marathon Digital had a negative return on equity of 2.11% and a net margin of 85.02%.The firm's revenue was up 64.0% on a year-over-year basis. During the same quarter last year, the firm posted ($0.72) earnings per share. Analysts forecast 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 firm's stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $15.28, for a total value of $420,276.40. Following the transaction, the chief executive officer owned 3,810,799 shares of the company's stock, valued at approximately $58,229,008.72. This trade represents a 0.72% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Vicki Mealer-Burke sold 14,887 shares of the firm's stock in a transaction dated Monday, September 8th. The shares were sold at an average price of $15.22, for a total transaction of $226,580.14. Following the completion of the transaction, the director directly owned 58,103 shares in the company, valued at approximately $884,327.66. The trade was a 20.40% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 204,598 shares of company stock valued at $3,483,548 in the last 90 days. 0.80% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Marathon Digital

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Fifth Third Bancorp increased its stake in shares of Marathon Digital by 59.9% during the 2nd quarter. Fifth Third Bancorp now owns 1,824 shares of the business services provider's stock worth $29,000 after purchasing an additional 683 shares during the last quarter. Estabrook Capital Management purchased a new stake in shares of Marathon Digital during the 2nd quarter worth approximately $31,000. IFP Advisors Inc increased its stake in shares of Marathon Digital by 375.4% during the 2nd quarter. IFP Advisors Inc now owns 2,534 shares of the business services provider's stock worth $40,000 after purchasing an additional 2,001 shares during the last quarter. CX Institutional purchased a new stake in shares of Marathon Digital during the 1st quarter worth approximately $68,000. Finally, Smartleaf Asset Management LLC increased its stake in shares of Marathon Digital by 303.6% during the 2nd quarter. Smartleaf Asset Management LLC now owns 5,013 shares of the business services provider's stock worth $75,000 after purchasing an additional 3,771 shares during the last quarter. Hedge funds and other institutional investors own 44.53% of the company's stock.

About Marathon Digital

MARA Holdings, Inc operates as a digital asset technology company that mines digital assets with a focus on the bitcoin ecosystem in United States. The company was formerly known as Marathon Digital Holdings, Inc and changed its name to MARA Holdings, Inc in August 2024. MARA Holdings, Inc was incorporated in 2010 and is headquartered in Fort Lauderdale, Florida.

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