Marathon Digital (NASDAQ:MARA) Trading Down 5.2% Following Weak Earnings

Key Points

• Marathon Digital shares fell 5.2% to $10.65 after the company reported a quarterly loss of $1.60 per share, far below the $0.17 consensus estimate, while revenue of $174.88 million also missed expectations.
• Analyst sentiment remains broadly positive but targets have been mixed: eight analysts rate the stock a Buy, two rate it Hold and two rate it Sell, producing a “Moderate Buy” consensus and an average price target of $18.50.
• Insiders sold 109,260 shares worth approximately $1.45 million during the past quarter, while institutional investors own 44.53% of the company.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report) shares fell 5.2% during mid-day trading on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $10.65 and last traded at $10.65. Approximately 35,939,084 shares were traded during trading, a decline of 21% from the average session volume of 45,681,355 shares. The stock had previously closed at $11.24.

The business services provider reported ($1.60) earnings per share for the quarter, missing the consensus estimate of $0.17 by ($1.77). The company had revenue of $174.88 million during the quarter, compared to the consensus estimate of $209.44 million. Marathon Digital had a negative net margin of 234.83% and a negative return on equity of 23.20%.

Analysts Set New Price Targets

A number of research analysts have issued reports on MARA shares. Rosenblatt Securities increased their target price on shares of Marathon Digital from $11.00 to $15.00 and gave the stock a "buy" rating in a research report on Friday, May 1st. Piper Sandler reduced their price target on Marathon Digital from $16.00 to $13.00 and set an "overweight" rating on the stock in a research report on Friday, July 17th. Cantor Fitzgerald cut their target price on Marathon Digital from $11.00 to $10.00 and set an "overweight" rating for the company in a research report on Thursday, April 9th. Weiss Ratings cut shares of Marathon Digital from a "sell (d)" rating to a "sell (d-)" rating in a research report on Tuesday, May 12th. Finally, Citizens Jmp began coverage on shares of Marathon Digital in a report on Wednesday, June 24th. They issued a "market outperform" rating and a $24.00 target price on the stock. Eight investment analysts have rated the stock with a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Marathon Digital currently has a consensus rating of "Moderate Buy" and a consensus target price of $18.50.

Insider Activity at Marathon Digital

In other news, Director Douglas K. Mellinger sold 7,000 shares of the stock in a transaction on Monday, June 22nd. The stock was sold at an average price of $16.00, for a total value of $112,000.00. Following the completion of the transaction, the director directly owned 231,618 shares in the company, valued at approximately $3,705,888. This represents a 2.93% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, 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 7,000 shares of the stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $14.25, for a total value of $99,750.00. Following the completion of the transaction, the general counsel owned 963,768 shares of the company's stock, valued at $13,733,694. This represents a 0.72% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 109,260 shares of company stock valued at $1,452,756. 0.97% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Marathon Digital

Several hedge funds have recently added to or reduced their stakes in MARA. Hennion & Walsh Asset Management Inc. grew its holdings in Marathon Digital by 24.4% during the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 50,275 shares of the business services provider's stock worth $698,000 after acquiring an additional 9,873 shares during the last quarter. GAMMA Investing LLC raised its stake in shares of Marathon Digital by 20.0% during the second quarter. GAMMA Investing LLC now owns 25,506 shares of the business services provider's stock valued at $354,000 after acquiring an additional 4,246 shares during the last quarter. Moody National Bank Trust Division bought a new position in shares of Marathon Digital during the second quarter valued at $1,858,000. CoreCap Advisors LLC lifted its holdings in shares of Marathon Digital by 128.0% during the second quarter. CoreCap Advisors LLC now owns 3,651 shares of the business services provider's stock worth $51,000 after purchasing an additional 2,050 shares during the period. Finally, Versant Capital Management Inc lifted its holdings in Marathon Digital by 257.3% during the 2nd quarter. Versant Capital Management Inc now owns 4,966 shares of the business services provider's stock worth $69,000 after buying an additional 3,576 shares during the period. 44.53% of the stock is currently owned by institutional investors and hedge funds.

Marathon Digital Price Performance

The company has a debt-to-equity ratio of 0.99, a current ratio of 1.84 and a quick ratio of 1.84. The company has a fifty day moving average of $12.97 and a 200 day moving average of $11.04. The firm has a market capitalization of $4.06 billion, a P/E ratio of -1.86 and a beta of 5.40.

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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