Marathon Digital (NASDAQ:MARA) Trading Down 1.4% After Earnings Miss

Marathon Digital Holdings, Inc. (NASDAQ:MARA)’s stock price traded down 1.4% on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $8.14 and last traded at $8.45. 45,536,944 shares changed hands during trading, an increase of 1% from the average session volume of 44,978,031 shares. The stock had previously closed at $8.57.

The business services provider reported ($4.52) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.23) by ($4.29). The business had revenue of $202.31 million for the quarter, compared to analysts’ expectations of $250.74 million. Marathon Digital had a negative return on equity of 2.59% and a net margin of 100.82%.

Analysts Set New Price Targets

Several analysts recently weighed in on the stock. Piper Sandler dropped their target price on shares of Marathon Digital from $26.00 to $16.00 and set an “overweight” rating for the company in a report on Wednesday, January 14th. Rosenblatt Securities lowered their price target on Marathon Digital from $25.00 to $22.00 and set a “buy” rating for the company in a research report on Wednesday, November 5th. Morgan Stanley initiated coverage on Marathon Digital in a research note on Monday, February 9th. They issued an “underweight” rating and a $8.00 price objective for the company. JPMorgan Chase & Co. decreased their target price on Marathon Digital from $20.00 to $13.00 and set an “overweight” rating on the stock in a research note on Monday, November 24th. Finally, Cantor Fitzgerald lowered their target price on Marathon Digital from $30.00 to $21.00 and set an “overweight” rating for the company in a report on Wednesday, November 5th. Eight investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $21.00.

Insider Buying and Selling

In related news, CEO Frederick G. Thiel sold 27,505 shares of the stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $7.66, for a total value of $210,688.30. Following the transaction, the chief executive officer owned 3,381,861 shares of the company’s stock, valued at $25,905,055.26. This represents a 0.81% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CFO Salman Hassan Khan sold 16,000 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 $122,560.00. Following the completion of the transaction, the chief financial officer owned 359,165 shares in the company, valued at approximately $2,751,203.90. The trade was a 4.26% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 133,247 shares of company stock worth $1,325,255 over the last 90 days. Insiders own 0.80% of the company’s stock.

Hedge Funds Weigh In On Marathon Digital

Several hedge funds have recently added to or reduced their stakes in the stock. Hollencrest Capital Management boosted its holdings in shares of Marathon Digital by 2,407.4% in the 3rd quarter. Hollencrest Capital Management now owns 1,354 shares of the business services provider’s stock valued at $25,000 after buying an additional 1,300 shares in the last quarter. Estabrook Capital Management acquired a new position in Marathon Digital in the second quarter valued at $31,000. Bessemer Group Inc. boosted its stake in Marathon Digital by 56.8% in the third quarter. Bessemer Group Inc. now owns 1,819 shares of the business services provider’s stock valued at $33,000 after acquiring an additional 659 shares in the last quarter. Eurizon Capital SGR S.p.A. purchased a new position in shares of Marathon Digital during the fourth quarter worth about $36,000. Finally, Hantz Financial Services Inc. increased its position in shares of Marathon Digital by 344.8% during the fourth quarter. Hantz Financial Services Inc. now owns 5,022 shares of the business services provider’s stock worth $45,000 after purchasing an additional 3,893 shares in the last quarter. 44.53% of the stock is currently owned by hedge funds and other institutional investors.

Marathon Digital Price Performance

The firm has a market capitalization of $3.20 billion, a PE ratio of 4.69 and a beta of 5.56. 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 company has a fifty day moving average price of $9.38 and a two-hundred day moving average price of $13.58.

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.