Marathon Digital (NASDAQ:MARA) Trading Up 1.3% - Here's Why

Key Points

• Shares rose 1.3% on the session to a high of $11.01 (last $10.49) with about 45.9M shares traded, roughly 3% below average volume.
• Marathon posted a sharp earnings miss—EPS $(4.52) vs. $(0.23) expected and revenue $202.3M vs. $250.7M—resulting in negative margins and analyst expectations of around -1.04 EPS for the year.
• Analyst views are mixed (MarketBeat consensus: "Hold", avg. price target $19.90) amid recent downgrades and price-target cuts, while insiders including the CEO and CFO have recently sold shares.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report)'s stock price was up 1.3% on Tuesday . The stock traded as high as $11.01 and last traded at $10.49. Approximately 45,891,863 shares changed hands during trading, a decline of 3% from the average daily volume of 47,201,234 shares. The stock had previously closed at $10.36.

Analyst Ratings Changes

Several research firms recently commented on MARA. Weiss Ratings cut shares of Marathon Digital from a "hold (c-)" rating to a "sell (d)" rating in a report on Friday, March 6th. HC Wainwright reissued a "neutral" rating on shares of Marathon Digital in a research note on Friday, February 27th. Piper Sandler lowered their price target on shares of Marathon Digital from $26.00 to $16.00 and set an "overweight" rating on the stock in a report on Wednesday, January 14th. Morgan Stanley initiated coverage on shares of Marathon Digital in a research note on Monday, February 9th. They issued an "underweight" rating and a $8.00 price target on the stock. Finally, 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. Seven equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $19.90.

Marathon Digital Stock Performance

The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 0.92. The stock has a market cap of $3.99 billion, a P/E ratio of -2.65 and a beta of 5.29. The firm's 50-day moving average is $8.50 and its two-hundred day moving average is $11.84.

Marathon Digital (NASDAQ:MARA - Get Free Report) last posted its earnings results on Thursday, February 26th. The business services provider reported ($4.52) EPS for the quarter, missing the consensus estimate of ($0.23) by ($4.29). The business had revenue of $202.31 million during the quarter, compared to the consensus estimate of $250.74 million. Marathon Digital had a negative return on equity of 19.01% and a negative net margin of 144.58%.The business's revenue was down 5.6% on a year-over-year basis. During the same period in the prior year, the firm earned $1.24 earnings per share. As a group, research analysts expect that Marathon Digital Holdings, Inc. will post -1.04 EPS for the current year.

Insider Buying and Selling at Marathon Digital

In other news, CEO Frederick G. Thiel sold 27,505 shares of the company's stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $9.18, for a total transaction of $252,495.90. Following the completion of the sale, the chief executive officer owned 4,788,954 shares in the company, valued at approximately $43,962,597.72. This represents a 0.57% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CFO Salman Hassan Khan sold 16,000 shares of the stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $9.18, for a total value of $146,880.00. Following the transaction, the chief financial officer directly owned 343,165 shares in the company, valued at approximately $3,150,254.70. This represents a 4.45% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 114,515 shares of company stock worth $1,029,678 over the last three months. Company insiders own 0.80% of the company's stock.

Institutional Investors Weigh In On Marathon Digital

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Hollencrest Capital Management raised its position in shares of Marathon Digital by 2,407.4% in the third quarter. Hollencrest Capital Management now owns 1,354 shares of the business services provider's stock valued at $25,000 after purchasing an additional 1,300 shares during the period. Bessemer Group Inc. boosted its holdings in shares of Marathon Digital by 56.8% during the 3rd quarter. Bessemer Group Inc. now owns 1,819 shares of the business services provider's stock worth $33,000 after buying an additional 659 shares during the period. Eurizon Capital SGR S.p.A. acquired a new position in Marathon Digital in the 4th quarter valued at $36,000. Hantz Financial Services Inc. grew its stake in Marathon Digital by 344.8% in the 4th quarter. Hantz Financial Services Inc. now owns 5,022 shares of the business services provider's stock valued at $45,000 after buying an additional 3,893 shares during the last quarter. Finally, Salomon & Ludwin LLC bought a new position in Marathon Digital in the 3rd quarter worth $47,000. 44.53% of the stock is currently owned by institutional investors and hedge funds.

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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