Marathon Digital (NASDAQ:MARA) Trading Up 10.7% - What's Next?

Key Points

• 10.7% intraday jump: Marathon Digital's stock rose about 10.7% to $11.87 (intraday high $12.04) on Thursday, with 16.2M shares traded — roughly 65% below its average session volume.
• Big earnings miss and weak fundamentals: The company reported EPS of $(4.52) versus $(0.23) expected and revenue of $202.3M versus $250.7M, remaining unprofitable; analysts' consensus is a "Hold" with an average target of $19 amid several price-target cuts.
• Insider selling notable: The General Counsel and CFO executed pre-arranged 10b5-1 sales and insiders have sold 172,605 shares (~$1.75M) over the last 90 days, while institutional investors own about 44.5% of the stock.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report)'s stock price traded up 10.7% during mid-day trading on Thursday . The stock traded as high as $12.04 and last traded at $11.8660. 16,206,709 shares changed hands during mid-day trading, a decline of 65% from the average session volume of 46,106,273 shares. The stock had previously closed at $10.72.

Analyst Ratings Changes

A number of research analysts recently weighed in on the company. Cantor Fitzgerald reduced their price objective 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. Morgan Stanley assumed coverage on Marathon Digital in a research report on Monday, February 9th. They set an "underweight" rating and a $8.00 price objective for the company. HC Wainwright reaffirmed a "neutral" rating on shares of Marathon Digital in a research report on Friday, February 27th. Piper Sandler reduced their price objective on Marathon Digital from $26.00 to $16.00 and set an "overweight" rating for the company in a research report on Wednesday, January 14th. Finally, Weiss Ratings downgraded shares of Marathon Digital from a "hold (c-)" rating to a "sell (d)" rating in a research report on Friday, March 6th. Seven analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, Marathon Digital presently has an average rating of "Hold" and a consensus target price of $19.00.

Marathon Digital Stock Up 12.1%

The company has a market capitalization of $4.57 billion, a PE ratio of -3.03 and a beta of 5.29. The company has a debt-to-equity ratio of 0.92, a current ratio of 1.27 and a quick ratio of 1.27. The company has a 50-day moving average of $9.33 and a two-hundred day moving average of $11.24.

Marathon Digital (NASDAQ:MARA - Get Free Report) last released its earnings results on Thursday, February 26th. The business services provider reported ($4.52) earnings per share for the quarter, missing the consensus estimate of ($0.23) by ($4.29). The company had revenue of $202.31 million for the quarter, compared to analysts' expectations of $250.74 million. Marathon Digital had a negative net margin of 144.58% and a negative return on equity of 19.01%. Marathon Digital's revenue for the quarter was down 5.6% on a year-over-year basis. During the same quarter last year, the firm posted $1.24 earnings per share. Sell-side analysts anticipate that Marathon Digital Holdings, Inc. will post -0.79 earnings per share for the current fiscal year.

Insider Activity

In other news, General Counsel Zabi Nowaid sold 42,090 shares of the business's stock in a transaction dated Friday, April 17th. The stock was sold at an average price of $12.00, for a total value of $505,080.00. Following the transaction, the general counsel directly owned 1,007,047 shares in the company, valued at $12,084,564. The trade was a 4.01% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Salman Hassan Khan sold 16,000 shares of the business's stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $11.68, for a total value of $186,880.00. Following the completion of the transaction, the chief financial officer owned 441,066 shares in the company, valued at $5,151,650.88. The trade was a 3.50% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 172,605 shares of company stock worth $1,745,843 over the last ninety days. Corporate insiders own 0.80% of the company's stock.

Institutional Investors Weigh In On Marathon Digital

Hedge funds have recently made changes to their positions in the company. Integrated Wealth Concepts LLC raised its position in Marathon Digital by 9.8% during the first quarter. Integrated Wealth Concepts LLC now owns 11,073 shares of the business services provider's stock valued at $127,000 after purchasing an additional 991 shares during the period. NewEdge Advisors LLC raised its position in Marathon Digital by 65.3% during the first quarter. NewEdge Advisors LLC now owns 7,672 shares of the business services provider's stock valued at $88,000 after purchasing an additional 3,032 shares during the period. United Services Automobile Association raised its position in Marathon Digital by 8.2% during the first quarter. United Services Automobile Association now owns 20,634 shares of the business services provider's stock valued at $257,000 after purchasing an additional 1,569 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in Marathon Digital by 11.0% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 643,311 shares of the business services provider's stock valued at $7,398,000 after purchasing an additional 63,903 shares during the period. Finally, Envestnet Asset Management Inc. purchased a new stake in Marathon Digital during the second quarter valued at approximately $183,000. 44.53% of the stock is currently owned by hedge funds and other institutional investors.

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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