Marathon Digital (NASDAQ:MARA) Trading Down 1.8% - Here's What Happened

Key Points

• Marathon Digital shares fell 1.8% on Thursday, trading between $13.58 and $14.07 on volume below its recent average.
• Analyst sentiment remains mixed: Morgan Stanley cut its price target to $7 and kept an underweight rating, while Rosenblatt raised its target to $15 and maintained a buy; the consensus rating is currently Hold with an average target of $18.38.
• The company’s latest earnings were weak, with EPS of -$4.52 versus expectations of -$0.23 and revenue of $202.31 million below estimates, while insiders recently sold shares and ownership by institutions remains significant at 44.53%.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report)'s share price fell 1.8% on Thursday . The stock traded as low as $13.58 and last traded at $14.07. 37,462,926 shares were traded during mid-day trading, a decline of 19% from the average session volume of 46,196,484 shares. The stock had previously closed at $14.33.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on MARA. Morgan Stanley cut their price target on Marathon Digital from $8.50 to $7.00 and set an "underweight" rating for the company in a research note on Tuesday, May 19th. Cantor Fitzgerald cut their price target on Marathon Digital from $11.00 to $10.00 and set an "overweight" rating for the company in a research note on Thursday, April 9th. HC Wainwright restated a "neutral" rating on shares of Marathon Digital in a research note on Friday, February 27th. Rosenblatt Securities lifted their price target on Marathon Digital from $11.00 to $15.00 and gave the company a "buy" rating in a research note on Friday, May 1st. Finally, Weiss Ratings lowered Marathon Digital from a "sell (d)" rating to a "sell (d-)" rating in a research note on Tuesday, May 12th. Seven research analysts have rated the stock with a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of $18.38.

Marathon Digital Trading Down 1.8%

The company has a current ratio of 1.84, a quick ratio of 1.84 and a debt-to-equity ratio of 0.99. The company has a market capitalization of $5.36 billion, a price-to-earnings ratio of -2.46 and a beta of 5.41. The company has a fifty day moving average of $10.93 and a 200-day moving average of $10.40.

Marathon Digital (NASDAQ:MARA - Get Free Report) last posted 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). Marathon Digital had a negative return on equity of 23.20% and a negative net margin of 234.83%.The firm had revenue of $202.31 million during the quarter, compared to analyst estimates of $250.74 million. During the same quarter in the previous year, the firm posted $1.24 earnings per share. The company's quarterly revenue was down 5.6% on a year-over-year basis. As a group, equities research analysts anticipate that Marathon Digital Holdings, Inc. will post -1.67 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CFO Salman Hassan Khan sold 16,000 shares of Marathon Digital stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $12.00, for a total value of $192,000.00. Following the sale, the chief financial officer directly owned 425,066 shares in the company, valued at approximately $5,100,792. The trade was a 3.63% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Zabi Nowaid sold 8,250 shares of the business's stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $12.00, for a total value of $99,000.00. Following the transaction, the general counsel owned 970,768 shares in the company, valued at approximately $11,649,216. This represents a 0.84% 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. In the last three months, insiders have sold 180,855 shares of company stock worth $2,033,654. Insiders own 0.80% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in MARA. Hollencrest Capital Management lifted its holdings in Marathon Digital by 2,407.4% in the third quarter. Hollencrest Capital Management now owns 1,354 shares of the business services provider's stock valued at $25,000 after acquiring an additional 1,300 shares during the last quarter. Ascentis Independent Advisors acquired a new position in Marathon Digital in the first quarter valued at approximately $28,000. Bessemer Group Inc. lifted its holdings 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 valued at $33,000 after acquiring an additional 659 shares during the last quarter. Bogart Wealth LLC lifted its holdings in Marathon Digital by 4,345.1% in the first quarter. Bogart Wealth LLC now owns 4,045 shares of the business services provider's stock valued at $33,000 after acquiring an additional 3,954 shares during the last quarter. Finally, Eurizon Capital SGR S.p.A. acquired a new position in Marathon Digital in the fourth quarter valued at approximately $36,000. 44.53% of the stock is currently owned by institutional investors and hedge funds.

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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