Marathon Digital Shares Dip 2.7% as Analysts Adjust Ratings
Shares of Marathon Digital Holdings, Inc. (NASDAQ: MARA) experienced a decline of 2.7% on Wednesday, trading as low as $11.77 before closing at $11.92. The trading volume reached approximately 37,349,132 shares, marking a 19% decrease from the average daily volume of 46,270,434 shares. The stock had previously closed at $12.25.
Several financial institutions have recently revised their outlooks on Marathon Digital. Compass Point upgraded the stock from a “neutral” rating to a “buy” rating, setting a target price of $30.00 in a report dated November 24, 2024. Conversely, JPMorgan Chase & Co. reduced its price target from $20.00 to $13.00, maintaining an “overweight” rating. Rosenblatt Securities lowered their price objective from $25.00 to $22.00, labeling the stock as a “buy.” In contrast, Macquarie raised its price objective from $26.00 to $29.00 and assigned an “outperform” rating. According to data from MarketBeat.com, the stock currently holds an average rating of “Moderate Buy” with a consensus target price of $23.50.
Recent Earnings and Insider Activity
Marathon Digital released its earnings report on November 4, 2024, revealing an earnings per share (EPS) of -$0.32, which fell short of analysts’ expectations of -$0.26. The company reported revenue of $252.41 million, compared to a forecast of $254.58 million. The firm recorded a negative return on equity of 2.59% and a net margin of 100.82%. Analysts project an EPS of -1.04 for the current year.
Insider trading activity has also been notable. Salman Hassan Khan, the Chief Financial Officer, sold 34,732 shares on November 17, 2024, at an average price of $11.99, amounting to a total of $416,436.68. After this transaction, he retained 283,298 shares valued at approximately $3,396,743.02, reflecting a 10.92% decrease in his position. Frederick G. Thiel, the Chief Executive Officer, also sold 27,505 shares on October 17, 2024, at an average price of $19.57, totaling $538,272.85. He currently holds 3,718,700 shares valued at $72,774,959, representing a 0.73% decrease in his holdings.
In total, insiders have sold 218,711 shares valued at $3,633,801 in the last quarter, with corporate insiders owning 0.80% of the stock.
Institutional Investments in Marathon Digital
Recent activity among institutional investors indicates a growing interest in Marathon Digital. Bessemer Group Inc. increased its stake by 56.8% during the third quarter, now owning 1,819 shares valued at $33,000 after acquiring 659 additional shares. Fifth Third Bancorp also increased its holdings by 59.9% in the second quarter, now owning 1,824 shares worth $29,000.
Other significant investors include CX Institutional, which boosted its holdings by 12.6%, and Archer Investment Corp, increasing its position by 10.9%. Smartleaf Asset Management LLC added 15.9% to its stake in the third quarter. Currently, institutional investors hold 44.53% of Marathon Digital’s stock.
Marathon Digital operates as a digital asset technology company, focusing on mining digital assets, particularly within the bitcoin ecosystem, and is based in Fort Lauderdale, Florida. The company, incorporated in 2010, was formerly known as Marathon Digital Holdings, Inc. before its rebranding in August 2024.
As analysts adjust their forecasts and insider trading activity continues, the future performance of Marathon Digital remains a point of interest for investors and market watchers alike.
