Marathon Digital (NASDAQ:MARA) Trading Up 8.6% - Here's Why

Key Points

• Shares rose 8.6% intraday to about $10.36 on Monday with ~49.45M shares traded (≈5% above average); the stock is above its 50‑day SMA ($8.47) but below the 200‑day SMA ($11.88).
• Quarterly results missed estimates: Marathon reported EPS of ($4.52) vs. ($0.23) expected and revenue of $202.3M vs. $250.7M, producing a steep negative net margin (‑144.58%) and analysts forecast ~‑1.04 EPS for the year.
• Mixed analyst/investor signals: the consensus rating is "Hold" with an average target of $19.90, while insiders (including the CEO and CFO) sold shares recently even as institutional ownership remains about 44.5%.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report) shares were up 8.6% during mid-day trading on Monday . The stock traded as high as $10.42 and last traded at $10.36. Approximately 49,451,266 shares were traded during trading, an increase of 5% from the average daily volume of 47,208,262 shares. The stock had previously closed at $9.54.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on MARA shares. Weiss Ratings cut Marathon Digital from a "hold (c-)" rating to a "sell (d)" rating in a research note on Friday, March 6th. HC Wainwright restated a "neutral" rating on shares of Marathon Digital in a research note on Friday, February 27th. Piper Sandler reduced their price objective 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. Morgan Stanley started coverage on Marathon Digital in a research note on Monday, February 9th. They set an "underweight" rating and a $8.00 price objective on the stock. Finally, Cantor Fitzgerald reduced their price objective on Marathon Digital from $11.00 to $10.00 and set an "overweight" rating on the stock in a research note on Thursday. Seven analysts have rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $19.90.

Marathon Digital Price Performance

The company has a market capitalization of $3.94 billion, a P/E ratio of -2.62 and a beta of 5.29. 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 business has a 50 day simple moving average of $8.47 and a 200-day simple moving average of $11.88.

Marathon Digital (NASDAQ:MARA - Get Free Report) last issued its quarterly earnings results on Thursday, February 26th. The business services provider reported ($4.52) EPS for the quarter, missing analysts' consensus estimates of ($0.23) by ($4.29). The business had revenue of $202.31 million for the quarter, compared to analyst estimates 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 period last year, the business posted $1.24 earnings per share. Analysts predict that Marathon Digital Holdings, Inc. will post -1.04 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Frederick G. Thiel sold 27,505 shares of the firm's stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $9.18, for a total transaction of $252,495.90. Following the transaction, the chief executive officer directly owned 4,788,954 shares of the company's stock, valued at approximately $43,962,597.72. This trade represents a 0.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Salman Hassan Khan sold 16,000 shares of the firm's stock in a transaction on 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 $3,150,254.70. This trade represents a 4.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 114,515 shares of company stock worth $1,029,678 over the last three months. Corporate insiders own 0.80% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of MARA. Vanguard Group Inc. grew its holdings in Marathon Digital by 3.1% during the fourth 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 during the period. State Street Corp grew its holdings in Marathon Digital by 1.4% during the second quarter. State Street Corp now owns 13,455,176 shares of the business services provider's stock worth $210,977,000 after acquiring an additional 191,380 shares during the period. UBS Group AG grew its holdings in Marathon Digital by 104.1% during the third quarter. UBS Group AG now owns 12,098,686 shares of the business services provider's stock worth $220,922,000 after acquiring an additional 6,172,110 shares during the period. Marex Group plc grew its holdings in Marathon Digital by 2.6% during the fourth quarter. Marex Group plc now owns 10,137,713 shares of the business services provider's stock worth $91,037,000 after acquiring an additional 259,210 shares during the period. Finally, Geode Capital Management LLC grew its holdings in Marathon Digital by 2.6% during the fourth quarter. Geode Capital Management LLC now owns 9,957,766 shares of the business services provider's stock worth $89,434,000 after acquiring an additional 251,674 shares during the period. 44.53% of the stock is owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.