Marathon Digital (NASDAQ:MARA) Shares Gap Up – Still a Buy?

Marathon Digital Holdings, Inc. (NASDAQ:MARA) shares gapped up before the market opened on Friday . The stock had previously closed at $8.45, but opened at $9.68. Marathon Digital shares last traded at $9.3120, with a volume of 43,736,585 shares changing hands.

Marathon Digital News Summary

Here are the key news stories impacting Marathon Digital this week:

• Positive Sentiment: Strategic AI/data-center deal with Starwood: MARA announced a partnership to convert mining sites into AI-ready campuses (targeting ~1 GW near-term and larger buildouts), a catalyst investors view as a path to stable, non-Bitcoin revenue. This deal is the main driver behind the intraday rally. Read More. and Read More.
• Neutral Sentiment: Cantor Fitzgerald cut its price target from $21 to $11 but kept an “overweight” rating — signaling confidence in the long-term thesis while tempering near-term upside assumptions (they cite ~16.8% upside vs. current levels). Read More.
• Neutral Sentiment: Company materials and call resources released (earnings presentation and transcript) provide management commentary on strategy execution and the AI pivot; investors should read the slides/call to assess timing and confirmed tenants for data centers. Read More.
• Negative Sentiment: Large Q4 earnings miss and revenue shortfall: MARA reported a steep GAAP loss (driven largely by non?cash fair-value adjustments on bitcoin holdings), EPS and revenue both missed estimates — a reminder that reported results can be volatile and mask operational cash generation. Read More. and Read More.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on MARA. Piper Sandler decreased their target price on Marathon Digital from $26.00 to $16.00 and set an “overweight” rating for the company in a research report on Wednesday, January 14th. Rosenblatt Securities reduced their target price on shares of Marathon Digital from $25.00 to $22.00 and set a “buy” rating for the company in a research report on Wednesday, November 5th. Weiss Ratings raised Marathon Digital from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, February 20th. HC Wainwright reissued a “neutral” rating on shares of Marathon Digital in a research report on Friday. Finally, Cantor Fitzgerald dropped their price target on Marathon Digital from $21.00 to $11.00 and set an “overweight” rating on the stock in a research report on Friday. Seven research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Marathon Digital presently has an average rating of “Moderate Buy” and a consensus target price of $20.00.

Marathon Digital Price Performance

The firm has a market cap of $3.45 billion, a P/E ratio of 5.05 and a beta of 5.56. The business’s fifty day simple moving average is $9.35 and its 200-day simple moving average is $13.54. The company has a current ratio of 2.09, a quick ratio of 2.09 and a debt-to-equity ratio of 0.63.

Marathon Digital (NASDAQ:MARA) last announced its quarterly earnings results on Thursday, February 26th. The business services provider reported ($4.52) earnings per share for the quarter, missing the consensus estimate of ($0.23) by ($4.29). The company had revenue of $202.31 million during the quarter, compared to analysts’ expectations of $250.74 million. Marathon Digital had a net margin of 100.82% and a negative return on equity of 2.59%. Marathon Digital’s revenue for the quarter was down 5.6% compared to the same quarter last year. During the same quarter last year, the firm posted $1.24 earnings per share. As a group, analysts forecast that Marathon Digital Holdings, Inc. will post -1.04 EPS for the current fiscal year.

Insider Activity

In other news, CEO Frederick G. Thiel sold 27,505 shares of the stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $7.66, for a total value of $210,688.30. Following the sale, the chief executive officer directly owned 3,381,861 shares of the company’s stock, valued at approximately $25,905,055.26. This represents a 0.81% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Salman Hassan Khan sold 16,000 shares of the firm’s stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $7.66, for a total transaction of $122,560.00. Following the completion of the transaction, the chief financial officer owned 359,165 shares of the company’s stock, valued at $2,751,203.90. This trade represents a 4.26% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 133,247 shares of company stock worth $1,325,255. Company insiders own 0.80% of the company’s stock.

Institutional Investors Weigh In On Marathon Digital

A number of institutional investors and hedge funds have recently bought and sold shares of MARA. UBS Group AG lifted its holdings in shares of Marathon Digital by 104.1% during the 3rd 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 last quarter. Marex Group plc bought a new stake in Marathon Digital during the second quarter worth about $84,301,000. Voloridge Investment Management LLC purchased a new position in shares of Marathon Digital in the 3rd quarter worth about $93,066,000. Norges Bank purchased a new position in shares of Marathon Digital in the 4th quarter worth about $39,492,000. Finally, Vanguard Group Inc. increased its position in shares of Marathon Digital by 9.8% during the 3rd quarter. Vanguard Group Inc. now owns 45,311,718 shares of the business services provider’s stock valued at $827,392,000 after purchasing an additional 4,049,979 shares during the last quarter. 44.53% of the stock is owned by hedge funds and other institutional investors.

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.