Stock Traders Buy Large Volume of Call Options on Marathon Digital (NASDAQ:MARA)

Key Points

• Investors bought an unusually large volume of call options—453,804 calls, a 98% increase versus average—suggesting heavy bullish speculative activity in MARA's options market.
• Marathon reported a significant quarterly miss, posting ($4.52) EPS versus an expected ($0.23) and revenue of $202.31M below estimates, with a deeply negative net margin.
• Company insiders have been selling stock (CEO sold 27,505 shares; CFO sold 16,000), and analysts remain mixed with a consensus rating of "Hold" and an average price target of $19.90.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report) was the target of some unusual options trading on Friday. Investors acquired 453,804 call options on the company. This is an increase of 98% compared to the average volume of 229,093 call options.

Wall Street Analysts Forecast Growth

Several analysts recently commented on the company. Morgan Stanley began coverage on Marathon Digital in a report on Monday, February 9th. They set an "underweight" rating and a $8.00 target price on the stock. Weiss Ratings lowered Marathon Digital from a "hold (c-)" rating to a "sell (d)" rating in a research report on Friday, March 6th. HC Wainwright reaffirmed a "neutral" rating on shares of Marathon Digital in a research note on Friday, February 27th. Cantor Fitzgerald cut their target price on shares of Marathon Digital from $11.00 to $10.00 and set an "overweight" rating for the company in a report on Thursday, April 9th. Finally, Piper Sandler decreased their target price on shares of Marathon Digital from $26.00 to $16.00 and set an "overweight" rating for the company 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 given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $19.90.

Insider Activity

In other Marathon Digital news, CEO Frederick G. Thiel sold 27,505 shares of Marathon Digital stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $9.18, for a total transaction of $252,495.90. Following the completion of the sale, the chief executive officer directly owned 4,788,954 shares in the company, valued at approximately $43,962,597.72. The trade was a 0.57% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CFO Salman Hassan Khan sold 16,000 shares of the company's stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $9.18, for a total transaction of $146,880.00. Following the completion of the sale, the chief financial officer directly owned 343,165 shares in the company, valued at approximately $3,150,254.70. The trade was a 4.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 114,515 shares of company stock valued at $1,029,678. Company insiders own 0.80% of the company's stock.

Hedge Funds Weigh In On Marathon Digital

Several hedge funds and other institutional investors have recently added to or reduced their stakes in MARA. Hollencrest Capital Management increased its stake in shares of Marathon Digital by 2,407.4% during the third quarter. Hollencrest Capital Management now owns 1,354 shares of the business services provider's stock worth $25,000 after purchasing an additional 1,300 shares in the last quarter. Bessemer Group Inc. lifted its stake in Marathon Digital by 56.8% in the 3rd quarter. Bessemer Group Inc. now owns 1,819 shares of the business services provider's stock valued at $33,000 after buying an additional 659 shares in the last quarter. Salomon & Ludwin LLC acquired a new stake in Marathon Digital in the 3rd quarter worth about $47,000. Danske Bank A S purchased a new stake in Marathon Digital during the 3rd quarter worth approximately $55,000. Finally, Eurizon Capital SGR S.p.A. purchased a new stake in Marathon Digital during the 4th quarter worth approximately $36,000. 44.53% of the stock is owned by hedge funds and other institutional investors.

Marathon Digital Stock Performance

Shares of MARA stock opened at $11.55 on Friday. The company has a current ratio of 1.27, a quick ratio of 1.27 and a debt-to-equity ratio of 0.92. Marathon Digital has a 12-month low of $6.66 and a 12-month high of $23.45. The business's 50 day moving average is $8.67 and its two-hundred day moving average is $11.79. The company has a market capitalization of $4.39 billion, a P/E ratio of -2.92 and a beta of 5.29.

Marathon Digital (NASDAQ:MARA - Get Free Report) last posted its quarterly earnings data 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). Marathon Digital had a negative net margin of 144.58% and a negative return on equity of 19.01%. The business had revenue of $202.31 million during the quarter, compared to analysts' expectations of $250.74 million. During the same quarter last year, the firm earned $1.24 earnings per share. The firm's quarterly revenue was down 5.6% compared to the same quarter last year. Analysts expect that Marathon Digital will post -1.04 EPS for the current fiscal year.

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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