Marathon Digital (NASDAQ:MARA) Trading Down 3.4% - Time to Sell?

Key Points

• Shares fell 3.4% on Tuesday to $11.23 (intraday low $11.02) with ~40.8M shares traded, about 13% below the average session volume.
• Marathon reported a heavy quarterly miss — EPS of ($4.52) vs. consensus ($0.23), a negative net margin of 144.58% and revenue of $202.31M versus estimates of $250.74M; analysts expect roughly -0.79 EPS for the year.
• Analyst views are mixed (consensus rating: "Hold" with a $19.90 target) while insiders have been selling (CEO and CFO trades disclosed) and institutional investors own about 44.53% of the stock.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report) shares traded down 3.4% during trading on Tuesday . The company traded as low as $11.02 and last traded at $11.23. 40,828,797 shares were traded during trading, a decline of 13% from the average session volume of 47,128,289 shares. The stock had previously closed at $11.63.

Analyst Ratings Changes

MARA has been the topic of a number of research analyst reports. HC Wainwright reaffirmed a "neutral" rating on shares of Marathon Digital in a report on Friday, February 27th. Cantor Fitzgerald lowered their target price on Marathon Digital from $11.00 to $10.00 and set an "overweight" rating on the stock in a report on Thursday, April 9th. Weiss Ratings lowered Marathon Digital from a "hold (c-)" rating to a "sell (d)" rating in a report on Friday, March 6th. Piper Sandler lowered their target price on Marathon Digital from $26.00 to $16.00 and set an "overweight" rating on the stock in a report on Wednesday, January 14th. Finally, Morgan Stanley initiated coverage on Marathon Digital in a report on Monday, February 9th. They set an "underweight" rating and a $8.00 target price on the stock. Seven investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $19.90.

Marathon Digital Price Performance

The company has a current ratio of 1.27, a quick ratio of 1.27 and a debt-to-equity ratio of 0.92. The firm has a market cap of $4.27 billion, a price-to-earnings ratio of -2.84 and a beta of 5.29. The stock has a 50-day moving average of $8.81 and a two-hundred day moving average of $11.59.

Marathon Digital (NASDAQ:MARA - Get Free Report) last released its quarterly earnings results 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 company had revenue of $202.31 million during the quarter, compared to analyst estimates of $250.74 million. During the same quarter last year, the business earned $1.24 EPS. The company's revenue for the quarter was down 5.6% compared to the same quarter last year. On average, analysts anticipate that Marathon Digital Holdings, Inc. will post -0.79 EPS for the current year.

Insiders Place Their Bets

In related news, CFO Salman Hassan Khan sold 16,000 shares of the stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $9.18, for a total value of $146,880.00. Following the completion of the transaction, the chief financial officer owned 343,165 shares in the company, valued at $3,150,254.70. This trade represents a 4.45% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Frederick G. Thiel sold 27,505 shares of the stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $9.18, for a total value of $252,495.90. Following the completion of the transaction, the chief executive officer owned 4,788,954 shares of the company's stock, valued at $43,962,597.72. This trade represents a 0.57% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 87,010 shares of company stock valued at $732,624 in the last quarter. 0.80% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Marathon Digital

A number of institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. boosted its position in Marathon Digital by 3.1% during the 4th quarter. Vanguard Group Inc. now owns 46,706,277 shares of the business services provider's stock worth $419,422,000 after acquiring an additional 1,394,559 shares during the period. State Street Corp raised its stake in shares of Marathon Digital by 1.4% during the 2nd quarter. State Street Corp now owns 13,455,176 shares of the business services provider's stock worth $210,977,000 after purchasing an additional 191,380 shares in the last quarter. UBS Group AG raised its stake in shares of Marathon Digital by 104.1% during the 3rd quarter. UBS Group AG now owns 12,098,686 shares of the business services provider's stock worth $220,922,000 after purchasing an additional 6,172,110 shares in the last quarter. Marex Group plc raised its stake in shares of Marathon Digital by 2.6% during the 4th quarter. Marex Group plc now owns 10,137,713 shares of the business services provider's stock worth $91,037,000 after purchasing an additional 259,210 shares in the last quarter. Finally, Geode Capital Management LLC raised its stake in shares of Marathon Digital by 2.6% during the 4th quarter. Geode Capital Management LLC now owns 9,957,766 shares of the business services provider's stock worth $89,434,000 after purchasing an additional 251,674 shares in the last quarter. 44.53% of the stock is currently owned by institutional investors and hedge funds.

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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