Marathon Digital (NASDAQ:MARA) Trading Down 5% – Here’s Why

Marathon Digital Holdings, Inc. (NASDAQ:MARA)’s stock price fell 5% during mid-day trading on Tuesday . The company traded as low as $11.73 and last traded at $12.72. 49,705,664 shares were traded during mid-day trading, an increase of 6% from the average session volume of 47,020,875 shares. The stock had previously closed at $13.39.

Analysts Set New Price Targets

A number of brokerages have issued reports on MARA. Cantor Fitzgerald decreased their price target on Marathon Digital from $11.00 to $10.00 and set an “overweight” rating for the company in a report on Thursday, April 9th. Weiss Ratings downgraded Marathon Digital from a “sell (d)” rating to a “sell (d-)” rating in a report on Tuesday. Morgan Stanley began coverage on Marathon Digital in a report on Monday, February 9th. They issued an “underweight” rating and a $8.00 price target for the company. Rosenblatt Securities boosted their price target on Marathon Digital from $11.00 to $15.00 and gave the company a “buy” rating in a report on Friday, May 1st. Finally, HC Wainwright reissued a “neutral” rating on shares of Marathon Digital in a report on Friday, February 27th. Seven research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $18.50.

Marathon Digital Price Performance

The firm has a market capitalization of $5.07 billion, a PE ratio of -2.32 and a beta of 5.41. The stock has a 50-day moving average price of $10.11 and a 200 day moving average price of $10.69. The company has a quick ratio of 1.27, a current ratio of 1.84 and a debt-to-equity ratio of 0.99.

Marathon Digital (NASDAQ:MARA) 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). The business had revenue of $202.31 million during the quarter, compared to analysts’ expectations of $250.74 million. Marathon Digital had a negative net margin of 234.83% and a negative return on equity of 23.20%. The firm’s quarterly revenue was down 5.6% compared to the same quarter last year. During the same quarter last year, the firm earned $1.24 earnings per share. Equities analysts forecast that Marathon Digital Holdings, Inc. will post -1.67 EPS for the current fiscal year.

Insider Activity

In other news, CEO Frederick G. Thiel sold 27,505 shares of the business’s stock in a transaction that occurred on Friday, April 17th. The stock was sold at an average price of $11.68, for a total value of $321,258.40. Following the completion of the sale, the chief executive officer directly owned 4,725,219 shares in the company, valued at $55,190,557.92. The trade was a 0.58% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Salman Hassan Khan sold 16,000 shares of the business’s stock in a transaction that occurred on Friday, April 17th. The stock was sold at an average price of $11.68, for a total value of $186,880.00. Following the sale, the chief financial officer owned 441,066 shares of the company’s stock, valued at $5,151,650.88. The trade was a 3.50% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 172,605 shares of company stock worth $1,745,843 over the last three months. 0.80% of the stock is currently owned by corporate insiders.

Institutional Trading of Marathon Digital

Several large investors have recently made changes to their positions in MARA. Hollencrest Capital Management increased its position 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. Ascentis Independent Advisors purchased a new stake in shares of Marathon Digital during the first quarter worth approximately $28,000. Bessemer Group Inc. increased its position in shares of Marathon Digital by 56.8% during the third quarter. Bessemer Group Inc. now owns 1,819 shares of the business services provider’s stock worth $33,000 after purchasing an additional 659 shares in the last quarter. Bogart Wealth LLC increased its position in shares of 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 worth $33,000 after purchasing an additional 3,954 shares in the last quarter. Finally, Eurizon Capital SGR S.p.A. purchased a new stake in shares of Marathon Digital during the fourth quarter worth approximately $36,000. 44.53% of the stock is currently 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.