Marathon Digital (NASDAQ:MARA) Trading Down 2.5% - Here's Why

Key Points

• Marathon Digital's stock dropped by 2.5%, with the share price last recorded at $16.83, significantly lower than its previous close of $17.26.
• The company received several analyst upgrades, with price targets raised by institutions such as JPMorgan and Rosenblatt Securities.
• Marathon recently reported a quarterly loss of ($0.40) per share, missing estimates, despite a 29.5% year-over-year revenue increase.
• Insider sales included a transaction by CFO Salman Hassan Khan, who sold shares valued at approximately $661,644, reflecting a 9.67% decrease in ownership.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report)'s share price was down 2.5% on Friday . The company traded as low as $16.63 and last traded at $16.83. Approximately 15,035,943 shares were traded during trading, a decline of 65% from the average daily volume of 42,544,520 shares. The stock had previously closed at $17.26.

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on MARA shares. JPMorgan Chase & Co. raised their price objective on Marathon Digital from $18.00 to $19.00 and gave the company a "neutral" rating in a research report on Friday, June 13th. Rosenblatt Securities lifted their price target on Marathon Digital from $17.00 to $20.00 and gave the stock a "buy" rating in a research report on Tuesday, May 27th. Compass Point upgraded Marathon Digital from a "sell" rating to a "neutral" rating and lifted their price target for the stock from $9.50 to $18.00 in a research report on Friday. HC Wainwright reiterated a "buy" rating and issued a $28.00 price target on shares of Marathon Digital in a research report on Thursday, April 24th. Finally, Barclays lifted their price target on Marathon Digital from $14.00 to $16.00 and gave the stock an "equal weight" rating in a research report on Monday, May 12th. Five investment analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. According to MarketBeat.com, Marathon Digital presently has an average rating of "Moderate Buy" and an average price target of $22.22.

Marathon Digital Stock Down 1.2%

The company's 50 day moving average price is $16.39 and its two-hundred day moving average price is $15.41. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 0.62. The stock has a market cap of $6.00 billion, a P/E ratio of -11.82 and a beta of 6.53.

Marathon Digital (NASDAQ:MARA - Get Free Report) last posted its quarterly earnings results on Thursday, May 8th. The business services provider reported ($0.40) earnings per share for the quarter, missing the consensus estimate of ($0.34) by ($0.06). Marathon Digital had a negative net margin of 46.68% and a positive return on equity of 6.33%. The company had revenue of $213.88 million for the quarter, compared to the consensus estimate of $234.19 million. During the same period in the prior year, the firm posted $1.26 EPS. The business's revenue was up 29.5% on a year-over-year basis. As a group, research analysts expect that Marathon Digital Holdings, Inc. will post -1.04 earnings per share for the current year.

Insider Activity

In related news, CFO Salman Hassan Khan sold 34,732 shares of Marathon Digital stock in a transaction that occurred on Tuesday, July 15th. The shares were sold at an average price of $19.05, for a total transaction of $661,644.60. Following the transaction, the chief financial officer directly owned 324,572 shares of the company's stock, valued at $6,183,096.60. This trade represents a 9.67% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director Douglas K. Mellinger sold 3,000 shares of Marathon Digital stock in a transaction that occurred on Friday, May 9th. The shares were sold at an average price of $16.00, for a total transaction of $48,000.00. Following the transaction, the director directly owned 176,859 shares in the company, valued at approximately $2,829,744. The trade was a 1.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 262,090 shares of company stock valued at $4,270,591. Corporate insiders own 0.80% of the company's stock.

Hedge Funds Weigh In On Marathon Digital

Institutional investors have recently bought and sold shares of the business. Raymond James Financial Inc. purchased a new position in Marathon Digital in the fourth quarter worth $1,408,000. Commonwealth Equity Services LLC grew its holdings in Marathon Digital by 35.0% in the fourth quarter. Commonwealth Equity Services LLC now owns 105,385 shares of the business services provider's stock worth $1,767,000 after purchasing an additional 27,324 shares during the last quarter. Natixis Advisors LLC grew its holdings in Marathon Digital by 95.6% in the fourth quarter. Natixis Advisors LLC now owns 30,703 shares of the business services provider's stock worth $515,000 after purchasing an additional 15,004 shares during the last quarter. Corient Private Wealth LLC purchased a new position in Marathon Digital in the fourth quarter worth $195,000. Finally, Xponance Inc. grew its holdings in Marathon Digital by 15.2% in the fourth quarter. Xponance Inc. now owns 20,597 shares of the business services provider's stock worth $345,000 after purchasing an additional 2,723 shares during the last quarter. 44.53% of the stock is owned by hedge funds and other 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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