Marathon Digital (NASDAQ:MARA) Trading Down 7.1% - Should You Sell?

Key Points

• Marathon Digital shares fell 7.1% on Thursday, trading as low as $11.25 and ending at $11.42, below the prior close of $12.29.
• Wall Street’s view on the stock is mixed but still constructive overall: Marathon Digital has a “Moderate Buy” consensus rating and an average price target of $18.83, though some firms recently trimmed their targets or downgraded the stock.
• Insider selling has continued, with the CEO and general counsel both selling shares in June and insiders unloading 194,855 shares over the last 90 days. At the same time, institutional investors remain heavily involved, with hedge funds and other institutions owning 44.53% of the stock.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report) shares fell 7.1% during trading on Thursday . The company traded as low as $11.25 and last traded at $11.42. 44,147,639 shares traded hands during trading, a decline of 3% from the average daily volume of 45,494,063 shares. The stock had previously closed at $12.29.

Analyst Ratings Changes

Several brokerages have recently weighed in on MARA. Weiss Ratings downgraded Marathon Digital from a "sell (d)" rating to a "sell (d-)" rating in a report on Tuesday, May 12th. Rosenblatt Securities boosted their price objective on Marathon Digital from $11.00 to $15.00 and gave the company a "buy" rating in a report on Friday, May 1st. Citizens Jmp began coverage on Marathon Digital in a research report on Wednesday, June 24th. They issued a "market outperform" rating and a $24.00 price objective on the stock. BTIG Research reiterated a "buy" rating and issued a $27.00 target price on shares of Marathon Digital in a research note on Monday, June 1st. Finally, Cantor Fitzgerald reduced their target price on Marathon Digital from $11.00 to $10.00 and set an "overweight" rating on the stock in a research note on Thursday, April 9th. 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. According to data from MarketBeat.com, Marathon Digital presently has a consensus rating of "Moderate Buy" and an average target price of $18.83.

Marathon Digital Stock Performance

The company has a market capitalization of $4.35 billion, a PE ratio of -2.00 and a beta of 5.36. 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 firm's 50-day simple moving average is $13.44 and its 200-day simple moving average is $10.87.

Insider Activity at Marathon Digital

In related news, CEO Frederick G. Thiel sold 27,505 shares of the stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $14.25, for a total value of $391,946.25. Following the transaction, the chief executive officer owned 4,562,009 shares of the company's stock, valued at $65,008,628.25. This represents a 0.60% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 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 that occurred on Wednesday, June 17th. The stock was 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 directly owned 963,768 shares in the company, valued at approximately $13,733,694. This trade represents a 0.72% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 194,855 shares of company stock worth $2,465,975. Insiders own 0.97% of the company's stock.

Institutional Investors Weigh In On Marathon Digital

Several hedge funds have recently made changes to their positions in MARA. UBS Group AG grew its position 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 buying an additional 6,172,110 shares in the last quarter. Voloridge Investment Management LLC bought a new stake in shares of Marathon Digital in the third quarter valued at about $93,066,000. Norges Bank bought a new stake in shares of Marathon Digital in the fourth quarter valued at about $39,492,000. Van ECK Associates Corp lifted its stake in Marathon Digital by 125.4% in the fourth quarter. Van ECK Associates Corp now owns 2,727,069 shares of the business services provider's stock worth $24,489,000 after acquiring an additional 1,516,937 shares during the period. Finally, Vanguard Group Inc. grew its holdings 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 in the last quarter. 44.53% of the stock is currently owned by hedge funds and other institutional investors.

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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