Marathon Digital (NASDAQ:MARA) Trading Down 7.8% - Here's What Happened

Key Points

• Marathon Digital's stock price fell by 7.8%, trading as low as $18.18 on Friday, with increased trading volume of 78,636,148 shares, compared to an average of 46,601,426 shares.
• Analysts have mixed ratings on Marathon Digital, with target prices ranging from $18.00 to $30.00 and a consensus rating of "Moderate Buy."
• The company reported earnings of $1.84 per share for the last quarter, significantly beating expectations, with revenue rising 64% year-over-year to $238.5 million.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report)'s stock price traded down 7.8% on Friday . The company traded as low as $18.18 and last traded at $18.63. 78,636,148 shares were traded during trading, an increase of 69% from the average session volume of 46,601,426 shares. The stock had previously closed at $20.20.

Wall Street Analyst Weigh In

A number of analysts have weighed in on the stock. JPMorgan Chase & Co. dropped their target price on shares of Marathon Digital from $22.00 to $20.00 and set an "overweight" rating on the stock in a report on Friday, September 26th. Compass Point assumed coverage on shares of Marathon Digital in a report on Monday, September 15th. They set a "neutral" rating and a $18.00 target price on the stock. Rosenblatt Securities reissued a "buy" rating and set a $20.00 target price on shares of Marathon Digital in a report on Wednesday, July 30th. BTIG Research reissued a "buy" rating and set a $27.00 target price on shares of Marathon Digital in a report on Friday, September 5th. Finally, Cantor Fitzgerald increased their target price on shares of Marathon Digital from $28.00 to $30.00 and gave the stock an "overweight" rating in a report on Monday. Seven equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $23.40.

Marathon Digital Stock Down 7.8%

The stock's 50-day moving average is $16.72 and its 200-day moving average is $15.64. The stock has a market cap of $6.90 billion, a P/E ratio of 16.78 and a beta of 6.33. The company has a current ratio of 0.54, a quick ratio of 0.54 and a debt-to-equity ratio of 0.47.

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

Insider Activity

In other news, CEO Frederick G. Thiel sold 27,505 shares of the firm's stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $15.28, for a total transaction of $420,276.40. Following the completion of the transaction, the chief executive officer owned 3,810,799 shares in the company, valued at approximately $58,229,008.72. This trade represents a 0.72% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CFO Salman Hassan Khan sold 34,732 shares of the firm's stock in a transaction dated Monday, September 15th. The shares were sold at an average price of $16.24, for a total transaction of $564,047.68. Following the transaction, the chief financial officer owned 318,428 shares of the company's stock, valued at approximately $5,171,270.72. This trade represents a 9.83% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 204,598 shares of company stock worth $3,486,838. Corporate insiders own 0.80% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in MARA. Fifth Third Bancorp boosted its holdings 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 buying an additional 683 shares during the period. Estabrook Capital Management acquired a new position in shares of Marathon Digital in the second quarter worth about $31,000. IFP Advisors Inc lifted its position in shares of Marathon Digital by 375.4% in the second quarter. IFP Advisors Inc now owns 2,534 shares of the business services provider's stock worth $40,000 after purchasing an additional 2,001 shares in the last quarter. CX Institutional purchased a new stake in shares of Marathon Digital in the first quarter worth approximately $68,000. Finally, Smartleaf Asset Management LLC lifted its position in shares of Marathon Digital by 303.6% in the second quarter. Smartleaf Asset Management LLC now owns 5,013 shares of the business services provider's stock worth $75,000 after purchasing an additional 3,771 shares in the last quarter. 44.53% of the stock is currently owned by institutional investors and hedge funds.

Marathon Digital Company Profile

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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