Marathon Digital (NASDAQ:MARA) Trading Up 7.2% - Time to Buy?

Key Points

• Shares rose 7.2% intraday to about $13.03–$13.12 on Wednesday, with volume ~52.45M shares, roughly 12% above average.
• Analysts are mixed: MarketBeat's consensus rating is "Hold" with a $18.22 price target, while recent moves include Rosenblatt raising its target to $15 (buy) and Weiss Ratings downgrading to sell.
• Fundamentals remain weak: Marathon reported a quarterly loss of ($4.52) EPS versus ($0.23) expected and a negative net margin of 144.58%, and insiders have sold 172,605 shares in the last three months under Rule 10b5‑1 plans.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report) shares were up 7.2% during trading on Wednesday . The stock traded as high as $13.12 and last traded at $13.03. Approximately 52,451,032 shares were traded during trading, an increase of 12% from the average daily volume of 47,018,750 shares. The stock had previously closed at $12.16.

Analysts Set New Price Targets

Several analysts have commented on MARA shares. HC Wainwright reiterated a "neutral" rating on shares of Marathon Digital in a research note on Friday, February 27th. Weiss Ratings downgraded Marathon Digital from a "hold (c-)" rating to a "sell (d)" rating in a research note on Friday, March 6th. Rosenblatt Securities increased their target price on Marathon Digital from $11.00 to $15.00 and gave the company a "buy" rating in a research note on Friday, May 1st. Cantor Fitzgerald cut 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. Finally, Piper Sandler cut their target price on Marathon Digital from $26.00 to $16.00 and set an "overweight" rating on the stock in a research note on Wednesday, January 14th. Seven equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $18.22.

Marathon Digital Trading Up 7.2%

The firm has a fifty day moving average price of $9.60 and a two-hundred day moving average price of $10.98. The company has a debt-to-equity ratio of 0.92, a quick ratio of 1.27 and a current ratio of 1.27.

Marathon Digital (NASDAQ:MARA - Get Free Report) last released its quarterly 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 firm had revenue of $202.31 million for the quarter, compared to the consensus estimate 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 quarterly revenue was down 5.6% compared to the same quarter last year. During the same period in the previous year, the company earned $1.24 earnings per share. As a group, analysts forecast that Marathon Digital Holdings, Inc. will post -0.79 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CFO Salman Hassan Khan sold 16,000 shares of the firm's stock in a transaction on Friday, April 17th. The stock was sold at an average price of $11.68, for a total value of $186,880.00. Following the transaction, the chief financial officer directly owned 441,066 shares of the company's stock, valued at approximately $5,151,650.88. This trade represents a 3.50% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Zabi Nowaid sold 42,090 shares of the firm's stock in a transaction on Friday, April 17th. The stock was sold at an average price of $12.00, for a total value of $505,080.00. Following the completion of the transaction, the general counsel directly owned 1,007,047 shares in the company, valued at approximately $12,084,564. This represents a 4.01% 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 three months, insiders have sold 172,605 shares of company stock valued at $1,745,843. 0.80% of the stock is owned by company insiders.

Hedge Funds Weigh In On Marathon Digital

A number of institutional investors have recently bought and sold shares of MARA. Integrated Wealth Concepts LLC raised its holdings in Marathon Digital by 9.8% in the 1st quarter. Integrated Wealth Concepts LLC now owns 11,073 shares of the business services provider's stock worth $127,000 after purchasing an additional 991 shares during the period. NewEdge Advisors LLC raised its holdings in Marathon Digital by 65.3% in the 1st quarter. NewEdge Advisors LLC now owns 7,672 shares of the business services provider's stock worth $88,000 after purchasing an additional 3,032 shares during the period. United Services Automobile Association raised its holdings in Marathon Digital by 8.2% in the 1st quarter. United Services Automobile Association now owns 20,634 shares of the business services provider's stock worth $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 holdings in Marathon Digital by 11.0% in the 1st 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 worth $7,398,000 after purchasing an additional 63,903 shares during the period. Finally, Envestnet Asset Management Inc. bought a new position in Marathon Digital in the 2nd quarter worth $183,000. 44.53% of the stock is owned by 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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