Marathon Digital (NASDAQ:MARA) Trading Down 1% - Should You Sell?

Key Points

• Marathon reported a massive quarterly loss of ($4.52) EPS versus ($0.23) expected and revenue of $202.3M versus $250.7M consensus, with a negative net margin (144.6%) and negative ROE, signaling material operational and financial weakness.
• Analysts are divided: Morgan Stanley started coverage with an underweight and $8 target, several firms have cut targets (Cantor Fitzgerald to $11, Piper Sandler to $16), and the MarketBeat consensus remains a Hold with a $20 target.
• Shares slipped about 1% to $8.57, trading below the 50‑day ($9.21) and 200‑day ($13.17) moving averages; insiders have recently sold shares and the stock exhibits high volatility (beta 5.51).

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report) shares dropped 1% on Tuesday . The company traded as low as $8.51 and last traded at $8.57. Approximately 42,798,177 shares changed hands during trading, a decline of 9% from the average daily volume of 47,284,930 shares. The stock had previously closed at $8.66.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on MARA. Morgan Stanley started coverage on Marathon Digital in a research report on Monday, February 9th. They issued an "underweight" rating and a $8.00 price objective on the stock. HC Wainwright reiterated a "neutral" rating on shares of Marathon Digital in a research report on Friday, February 27th. Cantor Fitzgerald decreased their target price 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. Weiss Ratings cut Marathon Digital from a "hold (c-)" rating to a "sell (d)" rating in a report on Friday. Finally, Piper Sandler dropped their price target on Marathon Digital from $26.00 to $16.00 and set an "overweight" rating for the company in a research note on Wednesday, January 14th. Seven equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $20.00.

Marathon Digital Stock Performance

The firm's 50 day simple moving average is $9.21 and its 200 day simple moving average is $13.17. The firm has a market cap of $3.26 billion, a PE ratio of -2.16 and a beta of 5.51. The company has a current ratio of 1.27, a quick ratio of 1.27 and a debt-to-equity ratio of 0.92.

Marathon Digital (NASDAQ:MARA - Get Free Report) last issued its quarterly earnings data on Thursday, February 26th. The business services provider reported ($4.52) earnings per share 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 firm had revenue of $202.31 million for the quarter, compared to analysts' expectations of $250.74 million. During the same quarter in the previous year, the business earned $1.24 EPS. The company's revenue for the quarter was down 5.6% on a year-over-year basis. On average, research analysts forecast that Marathon Digital Holdings, Inc. will post -1.04 EPS for the current fiscal year.

Insider Buying and Selling

In other Marathon Digital news, CFO Salman Hassan Khan sold 34,732 shares of the firm's stock in a transaction that occurred on Monday, December 15th. The stock was sold at an average price of $11.48, for a total transaction of $398,723.36. Following the completion of the transaction, the chief financial officer owned 248,566 shares in the company, valued at $2,853,537.68. This trade represents a 12.26% 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 Marathon Digital stock in a transaction that occurred on Tuesday, January 20th. The stock was sold at an average price of $10.80, for a total value 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 position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 133,247 shares of company stock valued at $1,325,255. 0.80% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Marathon Digital

A number of hedge funds have recently bought and sold shares of MARA. Hollencrest Capital Management grew its stake in shares of Marathon Digital by 2,407.4% in the 3rd quarter. Hollencrest Capital Management now owns 1,354 shares of the business services provider's stock worth $25,000 after buying an additional 1,300 shares in the last quarter. Estabrook Capital Management purchased a new stake in shares of Marathon Digital during the 2nd quarter valued at about $31,000. Bessemer Group Inc. raised its position in shares of 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. bought a new position in shares of Marathon Digital in the 4th quarter valued at about $36,000. Finally, Hantz Financial Services Inc. lifted its holdings in shares of Marathon Digital by 344.8% in the 4th quarter. Hantz Financial Services Inc. now owns 5,022 shares of the business services provider's stock valued at $45,000 after acquiring an additional 3,893 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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