Marathon Digital (NASDAQ:MARA) Shares Down 8.4% – Should You Sell?

Marathon Digital Holdings, Inc. (NASDAQ:MARA) shares fell 8.4% on Tuesday . The company traded as low as $8.61 and last traded at $8.66. 51,047,416 shares changed hands during mid-day trading, an increase of 8% from the average session volume of 47,370,121 shares. The stock had previously closed at $9.45.

Wall Street Analyst Weigh In

Several brokerages have issued reports on MARA. Weiss Ratings raised shares of Marathon Digital from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday, February 20th. Compass Point raised shares of Marathon Digital from a “neutral” rating to a “buy” rating and set a $30.00 target price for the company in a research note on Monday, November 24th. Rosenblatt Securities dropped their price target on Marathon Digital from $25.00 to $22.00 and set a “buy” rating for the company in a research note on Wednesday, November 5th. Morgan Stanley initiated 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. Finally, Piper Sandler cut their price target on shares of Marathon Digital from $26.00 to $16.00 and set an “overweight” rating on the stock in a report on Wednesday, January 14th. Seven investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Marathon Digital currently has a consensus rating of “Moderate Buy” and an average target price of $20.00.

Marathon Digital Price Performance

The company has a current ratio of 2.09, a quick ratio of 2.09 and a debt-to-equity ratio of 0.63. The stock has a market capitalization of $3.28 billion, a price-to-earnings ratio of -2.19 and a beta of 5.51. The stock has a 50-day simple moving average of $9.31 and a 200 day simple moving average of $13.42.

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 analysts’ consensus estimates of ($0.23) by ($4.29). The company had revenue of $202.31 million during the quarter, compared to analyst estimates of $250.74 million. Marathon Digital had a negative return on equity of 17.88% and a negative net margin of 144.58%.Marathon Digital’s quarterly revenue was down 5.6% on a year-over-year basis. During the same period in the prior year, the firm earned $1.24 EPS. On average, equities research analysts forecast that Marathon Digital Holdings, Inc. will post -1.04 EPS for the current fiscal year.

Insider Activity at Marathon Digital

In other Marathon Digital news, CEO Frederick G. Thiel sold 27,505 shares of the stock in a transaction on Tuesday, January 20th. The stock was sold at an average price of $10.80, for a total transaction of $297,054.00. Following the completion of the transaction, the chief executive officer directly owned 3,517,566 shares in the company, valued at $37,989,712.80. This represents a 0.78% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Salman Hassan Khan sold 34,732 shares of the company’s stock in a transaction dated Monday, December 15th. The stock was sold at an average price of $11.48, for a total transaction of $398,723.36. Following the completion of the sale, the chief financial officer directly owned 248,566 shares in the company, valued at approximately $2,853,537.68. The trade was a 12.26% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 133,247 shares of company stock valued at $1,325,255 in the last 90 days. 0.80% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Marathon Digital

Several hedge funds and other institutional investors have recently made changes to their positions in the company. UBS Group AG raised its stake in shares of Marathon Digital by 104.1% during the third quarter. UBS Group AG now owns 12,098,686 shares of the business services provider’s stock worth $220,922,000 after buying an additional 6,172,110 shares during the last quarter. Marex Group plc bought a new position in shares of Marathon Digital during the 2nd quarter worth approximately $84,301,000. Voloridge Investment Management LLC bought a new stake in Marathon Digital during the 3rd quarter worth about $93,066,000. Norges Bank bought a new position in Marathon Digital in the fourth quarter valued at approximately $39,492,000. Finally, Vanguard Group Inc. grew its stake in shares of Marathon Digital by 9.8% in the third quarter. Vanguard Group Inc. now owns 45,311,718 shares of the business services provider’s stock valued at $827,392,000 after buying an additional 4,049,979 shares in the last quarter. 44.53% of the stock is owned by institutional investors and hedge funds.

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.