Marathon Digital (NASDAQ:MARA) Trading Down 2.1% - Time to Sell?

Key Points

• Marathon Digital's stock price fell by 2.1% on Tuesday, trading at $18.26, with significant share volume at 57,249,339, marking a 25% increase from its average daily volume.
• Several research analysts have upgraded their price targets for the stock, with Piper Sandler and Macquarie raising theirs to $26.00, while the average target now stands at $24.30, indicating a "Moderate Buy" rating.
• In its recent quarterly earnings report, Marathon Digital beat expectations with a revenue of $238.5 million, reflecting a 64% year-over-year increase, and reported earnings of $1.84 per share against a consensus estimate of a loss.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report)'s stock price dropped 2.1% on Tuesday . The company traded as low as $18.04 and last traded at $18.26. Approximately 57,249,339 shares were traded during mid-day trading, an increase of 25% from the average daily volume of 45,956,578 shares. The stock had previously closed at $18.66.

Wall Street Analyst Weigh In

MARA has been the topic of a number of research analyst reports. Piper Sandler boosted their price target on shares of Marathon Digital from $23.00 to $26.00 and gave the stock an "overweight" rating in a report on Monday, July 21st. Rosenblatt Securities reissued a "buy" rating and issued a $20.00 price target on shares of Marathon Digital in a report on Wednesday, July 30th. Macquarie boosted their price target on shares of Marathon Digital from $19.00 to $26.00 and gave the stock an "outperform" rating in a report on Wednesday, July 30th. Compass Point began coverage on shares of Marathon Digital in a report on Monday, September 15th. They issued a "neutral" rating and a $18.00 price target on the stock. Finally, Cantor Fitzgerald upped their price objective on shares of Marathon Digital from $34.00 to $39.00 and gave the company an "overweight" rating in a report on Monday, July 28th. Seven investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $24.30.

Marathon Digital Stock Performance

The firm has a market capitalization of $6.76 billion, a PE ratio of 16.45 and a beta of 6.36. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.54 and a quick ratio of 0.54. The company's fifty day simple moving average is $16.37 and its 200 day simple moving average is $15.31.

Marathon Digital (NASDAQ:MARA - Get Free Report) last announced its quarterly earnings results on Tuesday, July 29th. The business services provider reported $1.84 earnings per share for the quarter, beating the consensus estimate of ($0.29) by $2.13. Marathon Digital had a negative return on equity of 2.11% and a net margin of 85.02%.The firm had revenue of $238.50 million for the quarter, compared to analysts' expectations of $212.25 million. During the same period in the prior year, the business posted ($0.72) earnings per share. The company's revenue was up 64.0% on a year-over-year basis. As a group, equities research analysts expect that Marathon Digital Holdings, Inc. will post -1.04 EPS for the current fiscal year.

Insider Activity

In other news, CEO Frederick G. Thiel sold 27,505 shares of the company's stock in a transaction dated Wednesday, September 17th. The stock was sold at an average price of $17.38, for a total transaction of $478,036.90. Following the sale, the chief executive officer directly owned 3,755,789 shares in the company, valued at $65,275,612.82. This represents a 0.73% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Vicki Mealer-Burke sold 14,887 shares of the company's stock in a transaction dated Monday, September 8th. The shares were sold at an average price of $15.22, for a total value of $226,580.14. Following the sale, the director owned 58,103 shares in the company, valued at approximately $884,327.66. This represents a 20.40% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 204,598 shares of company stock worth $3,483,548 over the last ninety days. Company insiders own 0.80% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Fifth Third Bancorp increased its position in shares of Marathon Digital by 59.9% in the second 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 second quarter valued at approximately $31,000. IFP Advisors Inc boosted its stake in shares of Marathon Digital by 375.4% during the second quarter. IFP Advisors Inc now owns 2,534 shares of the business services provider's stock valued at $40,000 after purchasing an additional 2,001 shares during the period. CX Institutional purchased a new stake in shares of Marathon Digital during the first quarter valued at approximately $68,000. Finally, Smartleaf Asset Management LLC boosted its stake in shares of Marathon Digital by 303.6% during the second quarter. Smartleaf Asset Management LLC now owns 5,013 shares of the business services provider's stock valued at $75,000 after purchasing an additional 3,771 shares during the period. 44.53% of the stock is currently owned by institutional investors.

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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