MARA (NASDAQ:MARA) Stock Falls 2.6% - Should You Sell?

Key Points

• MARA shares fell 2.6% to $6.84 in Monday trading, with volume below its average. The stock’s beta of 5.33 indicates substantial volatility.
• Analyst views are mixed: seven analysts rate MARA a Buy and three rate it a Sell, producing a consensus Hold rating and an average price target of $17.78.
• The company reported weak quarterly results, including a $1.60-per-share loss versus expectations for $0.17 in earnings and revenue of $174.88 million, down 26.7% year over year. Insiders have also sold 106,891 shares worth approximately $1.12 million over the past three months.

MARA Holdings (NASDAQ:MARA - Get Free Report) shares were down 2.6% during trading on Monday. The stock traded as low as $6.62 and last traded at $6.84. 33,602,643 shares changed hands during mid-day trading, a decline of 26% from the average daily volume of 45,232,457 shares. The stock had previously closed at $7.02.

Analysts Set New Price Targets

MARA has been the subject of a number of research analyst reports. Weiss Ratings lowered MARA from a "sell (d)" rating to a "sell (d-)" rating in a research report on Friday. HC Wainwright assumed coverage on shares of MARA in a research report on Friday, September 11th. They issued a "buy" rating and a $20.00 price target on the stock. Morgan Stanley set a $10.00 price target on MARA and gave the company an "underweight" rating in a research note on Friday, October 9th. Cantor Fitzgerald decreased their price objective on MARA from $14.00 to $12.00 and set an "overweight" rating for the company in a report on Friday, August 7th. Finally, Rosenblatt Securities reissued a "buy" rating and set a $15.00 price objective on shares of MARA in a report on Friday, August 7th. Seven analysts have rated the stock with a Buy rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $17.78.

MARA Stock Down 2.6%

The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 1.15. The stock has a market capitalization of $2.64 billion, a PE ratio of -0.75 and a beta of 5.33. The stock's fifty day simple moving average is $10.68 and its 200-day simple moving average is $11.75.

MARA (NASDAQ:MARA - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The business services provider reported ($1.60) EPS for the quarter, missing the consensus estimate of $0.17 by ($1.77). MARA had a negative net margin of 429.71% and a negative return on equity of 26.05%. The firm had revenue of $174.88 million during the quarter, compared to analysts' expectations of $209.44 million. During the same quarter last year, the business posted $1.84 EPS. The company's quarterly revenue was down 26.7% on a year-over-year basis. As a group, sell-side analysts forecast that MARA Holdings will post -1.65 EPS for the current fiscal year.

Insider Buying and Selling

In other MARA news, CEO Frederick G. Thiel sold 27,505 shares of the company's stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $11.22, for a total value of $308,606.10. Following the completion of the transaction, the chief executive officer owned 4,217,586 shares in the company, valued at $47,321,314.92. This represents a 0.65% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Salman Khan sold 16,000 shares of the company's stock in a transaction on Monday, August 17th. The shares were sold at an average price of $9.21, for a total value of $147,360.00. Following the completion of the transaction, the chief financial officer owned 377,066 shares of the company's stock, valued at $3,472,777.86. This trade represents a 4.07% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 106,891 shares of company stock worth $1,124,731. 0.97% of the stock is owned by company insiders.

Institutional Investors Weigh In On MARA

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Principal Financial Group Inc. increased its position in shares of MARA by 2.0% during the first quarter. Principal Financial Group Inc. now owns 1,838,149 shares of the business services provider's stock valued at $14,999,000 after buying an additional 35,978 shares during the period. Hsbc Holdings PLC boosted its position in shares of MARA by 11.5% in the first quarter. Hsbc Holdings PLC now owns 634,172 shares of the business services provider's stock valued at $5,099,000 after acquiring an additional 65,220 shares during the period. Delta Global Management LP bought a new position in shares of MARA in the first quarter valued at approximately $5,064,000. Compass Rose Asset Management LP purchased a new position in MARA during the first quarter valued at approximately $4,243,000. Finally, Headlands Technologies LLC grew its stake in MARA by 51.2% during the second quarter. Headlands Technologies LLC now owns 444,756 shares of the business services provider's stock valued at $6,178,000 after acquiring an additional 150,665 shares in the last quarter. 44.53% of the stock is currently owned by institutional investors.

MARA Company Profile

MARA Holdings, Inc NASDAQ: MARA, formerly known as Marathon Digital Holdings, is a digital asset mining and energy infrastructure company. Its primary business is securing the Bitcoin network by operating specialized computing equipment that validates transactions and earns Bitcoin rewards.

The company develops and operates data centers and digital asset computing infrastructure, while also pursuing strategies to access low-cost and surplus energy. MARA has expanded its operations through a combination of owned facilities, hosting arrangements and acquisitions, with activities spanning North America and other international markets.

The company was founded in 2010 as Marathon Patent Group and later shifted its focus toward cryptocurrency mining before adopting the Marathon Digital name.

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