Marathon Digital (NASDAQ:MARA) Shares Down 7.4% – Should You Sell?

Marathon Digital Holdings, Inc. (NASDAQ:MARA)’s stock price traded down 7.4% during trading on Tuesday . The stock traded as low as $8.15 and last traded at $8.25. 40,544,413 shares traded hands during mid-day trading, a decline of 14% from the average session volume of 46,905,504 shares. The stock had previously closed at $8.91.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on MARA. Piper Sandler reduced their price objective on Marathon Digital from $26.00 to $16.00 and set an “overweight” rating on the stock in a research note on Wednesday, January 14th. Cantor Fitzgerald lowered their target price on Marathon Digital from $21.00 to $11.00 and set an “overweight” rating for the company in a research note on Friday, February 27th. Weiss Ratings downgraded Marathon Digital from a “hold (c-)” rating to a “sell (d)” rating in a report on Friday, March 6th. Morgan Stanley initiated coverage on Marathon Digital in a research report on Monday, February 9th. They issued an “underweight” rating and a $8.00 price target on the stock. Finally, HC Wainwright reiterated a “neutral” rating on shares of Marathon Digital in a research note on Friday, February 27th. Seven analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $20.00.

Marathon Digital Price Performance

The firm has a market capitalization of $3.26 billion, a price-to-earnings ratio of -2.17 and a beta of 5.51. The stock’s fifty day moving average price is $8.89 and its two-hundred day moving average price is $12.61. 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 (NASDAQ:MARA) last issued its earnings results 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 firm had revenue of $202.31 million for the quarter, compared to analyst estimates of $250.74 million. Marathon Digital had a negative return on equity of 19.01% and a negative net margin of 144.58%.The business’s revenue for the quarter was down 5.6% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.24 EPS. Equities research analysts expect that Marathon Digital Holdings, Inc. will post -1.04 EPS for the current year.

Insider Activity

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

Institutional Trading of Marathon Digital

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MARA. Bessemer Group Inc. boosted its holdings in shares of 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. Smartleaf Asset Management LLC raised its stake in Marathon Digital by 15.9% during the 3rd quarter. Smartleaf Asset Management LLC now owns 5,812 shares of the business services provider’s stock worth $108,000 after acquiring an additional 799 shares in the last quarter. Vanguard Personalized Indexing Management LLC raised its stake in Marathon Digital by 3.1% during the 3rd quarter. Vanguard Personalized Indexing Management LLC now owns 29,389 shares of the business services provider’s stock worth $537,000 after acquiring an additional 882 shares in the last quarter. Ameritas Investment Partners Inc. lifted its position in Marathon Digital by 2.7% in the second quarter. Ameritas Investment Partners Inc. now owns 35,443 shares of the business services provider’s stock valued at $556,000 after acquiring an additional 934 shares during the last quarter. Finally, United Capital Management of KS Inc. lifted its position in Marathon Digital by 2.4% in the third quarter. United Capital Management of KS Inc. now owns 40,054 shares of the business services provider’s stock valued at $731,000 after acquiring an additional 937 shares during the last quarter. Institutional investors and hedge funds own 44.53% of the company’s stock.

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.