Marathon Digital (NASDAQ:MARA) Shares Down 5.2% - Here's What Happened

Key Points

• Marathon Digital shares fell 5.2% to $11.22, with about 41.6 million shares changing hands. The stock has a $4.33 billion market capitalization and a high beta of 5.40, indicating significant volatility.
• Analyst sentiment remains moderately bullish, with eight Buy, two Hold and two Sell ratings; the average price target is $18.78, though targets range from $6.00 to $27.00.
• The company reported a sharply weaker quarter, including a $1.60 per-share loss versus the $0.17 consensus estimate and revenue of $174.88 million below expectations. Revenue declined 26.7% year over year, while insiders collectively sold 109,386 shares worth about $1.33 million during the past quarter.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report)'s stock price was down 5.2% during trading on Wednesday . The company traded as low as $10.99 and last traded at $11.22. Approximately 41,634,869 shares were traded during trading, a decline of 10% from the average session volume of 46,378,500 shares. The stock had previously closed at $11.83.

Analysts Set New Price Targets

Several analysts recently weighed in on MARA shares. Citizens Jmp assumed coverage on shares of Marathon Digital in a research note on Wednesday, June 24th. They issued a "market outperform" rating and a $24.00 price objective on the stock. Rosenblatt Securities reaffirmed a "buy" rating and set a $15.00 target price on shares of Marathon Digital in a report on Friday, August 7th. BTIG Research reissued a "buy" rating and issued a $27.00 price target on shares of Marathon Digital in a research note on Monday, June 1st. Morgan Stanley raised their price objective on Marathon Digital from $5.50 to $6.00 and gave the stock an "underweight" rating in a research report on Thursday, August 13th. Finally, Cantor Fitzgerald cut their price objective on Marathon Digital from $14.00 to $12.00 and set an "overweight" rating on the stock in a research note on Friday, August 7th. Eight research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $18.78.

Marathon Digital Trading Down 5.2%

The company has a debt-to-equity ratio of 1.15, a current ratio of 0.89 and a quick ratio of 0.89. The firm has a market cap of $4.33 billion, a price-to-earnings ratio of -1.22 and a beta of 5.40. The firm's fifty day moving average is $11.92 and its 200-day moving average is $11.04.

Marathon Digital (NASDAQ:MARA - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The business services provider reported ($1.60) earnings per share for the quarter, missing the consensus estimate of $0.17 by ($1.77). The business had revenue of $174.88 million during the quarter, compared to the consensus estimate of $209.44 million. Marathon Digital had a negative return on equity of 26.05% and a negative net margin of 429.71%.The business's revenue was down 26.7% on a year-over-year basis. During the same period last year, the business posted $1.84 earnings per share. Equities analysts anticipate that Marathon Digital Holdings, Inc. will post -1.24 earnings per share for the current year.

Insider Activity at Marathon Digital

In other Marathon Digital news, CEO Frederick G. Thiel sold 27,505 shares of Marathon Digital stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $14.25, for a total value of $391,946.25. Following the completion of the sale, the chief executive officer directly owned 4,562,009 shares of the company's stock, valued at approximately $65,008,628.25. The trade was a 0.60% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through 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 company's stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $9.21, for a total transaction of $147,360.00. Following the transaction, the chief financial officer owned 377,066 shares in the company, valued at $3,472,777.86. This represents a 4.07% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 109,386 shares of company stock worth $1,332,889 over the last quarter. 0.97% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in MARA. Vanguard Group Inc. grew its stake in Marathon Digital by 3.1% in the fourth quarter. Vanguard Group Inc. now owns 46,706,277 shares of the business services provider's stock valued at $419,422,000 after acquiring an additional 1,394,559 shares during the period. State Street Corp lifted its holdings in shares of Marathon Digital by 1.4% in the 2nd quarter. State Street Corp now owns 13,455,176 shares of the business services provider's stock worth $210,977,000 after purchasing an additional 191,380 shares in the last quarter. UBS Group AG grew its position in Marathon Digital by 104.1% in the 3rd quarter. UBS Group AG now owns 12,098,686 shares of the business services provider's stock valued at $220,922,000 after purchasing an additional 6,172,110 shares during the period. Marex Group plc grew its position in Marathon Digital by 2.6% in the 4th quarter. Marex Group plc now owns 10,137,713 shares of the business services provider's stock valued at $91,037,000 after purchasing an additional 259,210 shares during the period. Finally, Geode Capital Management LLC increased its stake in Marathon Digital by 2.6% during the 4th quarter. Geode Capital Management LLC now owns 9,957,766 shares of the business services provider's stock valued at $89,434,000 after purchasing an additional 251,674 shares in the last quarter. 44.53% of the stock is 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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