Marathon Digital (NASDAQ:MARA) Trading Down 1.4% - Here's What Happened

Key Points

• Shares of Marathon Digital fell about 1.4% to $11.02 on Tuesday (intraday low $10.60) on lighter-than-normal trading of ~30.7M shares (down ~34% vs. average); the company has a market cap of ~$4.19 billion and a high beta of 5.29.
• Marathon posted a major quarterly EPS miss (loss of $4.52 vs. -$0.23 expected) and revenue of $202.3M versus $250.7M expected, leaving margins deeply negative; analysts are mixed (consensus "Hold", $19 target) and insiders have been selling shares (172,605 sold in the last three months under Rule 10b5‑1 plans).

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report)'s stock price dropped 1.4% during trading on Tuesday . The stock traded as low as $10.60 and last traded at $11.02. Approximately 30,694,446 shares were traded during trading, a decline of 34% from the average daily volume of 46,755,301 shares. The stock had previously closed at $11.18.

Wall Street Analyst Weigh In

MARA has been the topic of several analyst reports. HC Wainwright reiterated a "neutral" rating on shares of Marathon Digital in a report on Friday, February 27th. Morgan Stanley initiated coverage on shares of Marathon Digital in a report on Monday, February 9th. They set an "underweight" rating and a $8.00 price target on the stock. Cantor Fitzgerald cut their price target on shares of Marathon Digital from $11.00 to $10.00 and set an "overweight" rating on the stock in a report on Thursday, April 9th. Piper Sandler cut their price target on shares of Marathon Digital from $26.00 to $16.00 and set an "overweight" rating on the stock in a report on Wednesday, January 14th. Finally, Weiss Ratings downgraded shares of Marathon Digital from a "hold (c-)" rating to a "sell (d)" rating in a report on Friday, March 6th. Seven analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $19.00.

Marathon Digital Price Performance

The company has a market capitalization of $4.19 billion, a P/E ratio of -2.78 and a beta of 5.29. The company has a debt-to-equity ratio of 0.92, a quick ratio of 1.27 and a current ratio of 1.27. The firm's fifty day moving average is $9.19 and its 200 day moving average is $11.30.

Marathon Digital (NASDAQ:MARA - Get Free Report) last released its quarterly earnings data 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). The company had revenue of $202.31 million during the quarter, compared to analysts' expectations of $250.74 million. Marathon Digital had a negative net margin of 144.58% and a negative return on equity of 19.01%. Marathon Digital's quarterly revenue was down 5.6% on a year-over-year basis. During the same period last year, the firm earned $1.24 earnings per share. As a group, analysts predict that Marathon Digital Holdings, Inc. will post -0.79 earnings per share for the current fiscal year.

Insider Buying and Selling at Marathon Digital

In other Marathon Digital news, General Counsel Zabi Nowaid sold 42,090 shares of the business's stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $12.00, for a total value of $505,080.00. Following the completion of the sale, the general counsel directly owned 1,007,047 shares of the company's stock, valued at $12,084,564. The trade was a 4.01% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Salman Hassan Khan sold 16,000 shares of the business's stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $11.68, for a total transaction of $186,880.00. Following the completion of the sale, the chief financial officer directly owned 441,066 shares of the company's stock, valued at approximately $5,151,650.88. This trade represents a 3.50% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 172,605 shares of company stock valued at $1,745,843 in the last three months. Company insiders own 0.80% of the company's stock.

Institutional Investors Weigh In On Marathon Digital

Large investors have recently added to or reduced their stakes in the stock. Hollencrest Capital Management boosted its position in 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 valued at $25,000 after buying an additional 1,300 shares during the period. Bessemer Group Inc. lifted its position 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 worth $33,000 after purchasing an additional 659 shares during the period. Salomon & Ludwin LLC purchased a new stake in shares of Marathon Digital in the 3rd quarter worth approximately $47,000. Danske Bank A S purchased a new stake in shares of Marathon Digital in the 3rd quarter worth approximately $55,000. Finally, Ascentis Independent Advisors purchased a new stake in shares of Marathon Digital in the 1st quarter worth approximately $28,000. 44.53% of the stock is 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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