Marathon Digital (NASDAQ:MARA) Trading 5.8% Higher - Should You Buy?

Key Points

• Marathon Digital shares rose 5.8% to $11.83 on heavy trading volume, with a market capitalization of approximately $4.57 billion.
• Analysts maintain a consensus “Moderate Buy” rating with an average price target of $18.78, although targets vary widely from $6.00 to $27.00.
• The company reported a significant quarterly loss of $1.60 per share, missing estimates, while revenue fell 26.7% year over year; insiders also sold more than $1.3 million of stock over the past three months.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report)'s share price shot up 5.8% during trading on Tuesday . The company traded as high as $12.15 and last traded at $11.83. Approximately 48,272,800 shares changed hands during trading, an increase of 4% from the average daily volume of 46,406,332 shares. The stock had previously closed at $11.18.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on the stock. Rosenblatt Securities reiterated a "buy" rating and issued a $15.00 price target on shares of Marathon Digital in a report on Friday, August 7th. BTIG Research restated a "buy" rating and set a $27.00 price objective on shares of Marathon Digital in a research note on Monday, June 1st. Weiss Ratings raised shares of Marathon Digital from a "sell (d-)" rating to a "sell (d)" rating in a report on Friday. Cantor Fitzgerald cut their price objective on shares of Marathon Digital from $14.00 to $12.00 and set an "overweight" rating on the stock in a research note on Friday, August 7th. Finally, Morgan Stanley raised their target price on shares of Marathon Digital from $5.50 to $6.00 and gave the stock an "underweight" rating in a report on Thursday, August 13th. Eight analysts have rated the stock with a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $18.78.

Marathon Digital Trading Up 5.8%

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 company has a 50-day simple moving average of $11.97 and a 200 day simple moving average of $11.02. The firm has a market cap of $4.57 billion, a PE ratio of -1.29 and a beta of 5.40.

Marathon Digital (NASDAQ:MARA - Get Free Report) last posted its earnings results 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). Marathon Digital 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 for the quarter, compared to analysts' expectations of $209.44 million. During the same period last year, the firm earned $1.84 earnings per share. Marathon Digital's revenue for the quarter was down 26.7% compared to the same quarter last year. As a group, sell-side analysts forecast that Marathon Digital Holdings, Inc. will post -1.24 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Salman Hassan Khan sold 16,000 shares of the firm's stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $9.21, for a total transaction of $147,360.00. Following the sale, the chief financial officer directly owned 377,066 shares in the company, valued at $3,472,777.86. This trade represents a 4.07% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Frederick G. Thiel sold 27,505 shares of the firm's stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $14.25, for a total value of $391,946.25. Following the sale, the chief executive officer owned 4,562,009 shares in the company, valued at $65,008,628.25. This trade represents a 0.60% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 109,386 shares of company stock worth $1,332,889 over the last three months. Corporate insiders own 0.97% of the company's stock.

Institutional Trading of Marathon Digital

A number of institutional investors and hedge funds have recently made changes to their positions in MARA. Ascentis Independent Advisors acquired a new stake in Marathon Digital in the 1st quarter valued at $28,000. Bogart Wealth LLC lifted its holdings in Marathon Digital by 4,345.1% during the first quarter. Bogart Wealth LLC now owns 4,045 shares of the business services provider's stock valued at $33,000 after purchasing an additional 3,954 shares in the last quarter. Eurizon Capital SGR S.p.A. acquired a new stake in shares of Marathon Digital in the fourth quarter valued at about $36,000. Hantz Financial Services Inc. grew its position in shares of Marathon Digital by 344.8% in the fourth quarter. Hantz Financial Services Inc. now owns 5,022 shares of the business services provider's stock valued at $45,000 after purchasing an additional 3,893 shares during the period. Finally, CoreCap Advisors LLC increased its stake in shares of Marathon Digital by 128.0% during the second quarter. CoreCap Advisors LLC now owns 3,651 shares of the business services provider's stock worth $51,000 after purchasing an additional 2,050 shares in the last quarter. 44.53% of the stock is currently owned by hedge funds and other institutional investors.

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.

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