Marathon Digital (NASDAQ:MARA) Trading Down 6.4% – Should You Sell?

Marathon Digital Holdings, Inc. (NASDAQ:MARA) shares traded down 6.4% on Friday . The company traded as low as $12.13 and last traded at $12.44. 39,651,879 shares were traded during mid-day trading, a decline of 15% from the average session volume of 46,819,602 shares. The stock had previously closed at $13.29.

Wall Street Analysts Forecast Growth

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

Marathon Digital Price Performance

The stock’s fifty day moving average price is $10.11 and its 200-day moving average price is $10.69. The firm has a market cap of $4.74 billion, a price-to-earnings ratio of -2.17 and a beta of 5.41. The company has a current ratio of 1.84, a quick ratio of 1.27 and a debt-to-equity ratio of 0.99.

Marathon Digital (NASDAQ:MARA) last released 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 analyst estimates of $250.74 million. Marathon Digital had a negative net margin of 234.83% and a negative return on equity of 23.20%. The company’s revenue was down 5.6% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.24 earnings per share. As a group, equities research analysts forecast that Marathon Digital Holdings, Inc. will post -1.67 earnings per share for the current fiscal year.

Insider Activity

In other news, General Counsel Zabi Nowaid sold 42,090 shares of the company’s stock in a transaction on Friday, April 17th. The stock was sold at an average price of $12.00, for a total value of $505,080.00. Following the transaction, the general counsel owned 1,007,047 shares of the company’s stock, valued at $12,084,564. This represents a 4.01% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Salman Hassan Khan sold 16,000 shares of the stock in a transaction 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 transaction, the chief financial officer owned 441,066 shares of the company’s stock, valued at approximately $5,151,650.88. This represents 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 have sold a total of 172,605 shares of company stock valued at $1,745,843 in the last quarter. Insiders own 0.80% of the company’s stock.

Institutional Investors Weigh In On Marathon Digital

A number of institutional investors have recently made changes to their positions in MARA. Delta Global Management LP acquired a new position in shares of Marathon Digital in the 1st quarter worth approximately $5,064,000. Compass Rose Asset Management LP purchased a new stake in Marathon Digital in the first quarter valued at approximately $4,243,000. Mizuho Markets Americas LLC lifted its stake in Marathon Digital by 5.0% during the first quarter. Mizuho Markets Americas LLC now owns 347,198 shares of the business services provider’s stock worth $2,833,000 after purchasing an additional 16,620 shares in the last quarter. Sei Investments Co. boosted its position in shares of Marathon Digital by 32.3% during the first quarter. Sei Investments Co. now owns 54,147 shares of the business services provider’s stock worth $442,000 after buying an additional 13,222 shares during the period. Finally, Cetera Investment Advisers boosted its position in shares of Marathon Digital by 1.3% during the first quarter. Cetera Investment Advisers now owns 185,692 shares of the business services provider’s stock worth $1,515,000 after buying an additional 2,381 shares during the period. 44.53% of the stock is currently 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.