MARA (NASDAQ:MARA) Stock Rated Strong-Buy in New Coverage at Compass Point

Key Points

• Compass Point initiated coverage of MARA with a Strong Buy rating. Analyst views remain mixed overall: MarketBeat reports an average Hold rating and a $16.22 consensus price target.
• MARA reported quarterly EPS of $1.28, beating estimates, but revenue of $164.23 million fell short of the $183.24 million consensus. The article also notes negative net margin and return on equity.
• The company authorized a share repurchase program of up to $500 million and sold bitcoin to repay $750 million of bitcoin-backed loans, reducing leverage; management may sell more bitcoin to fund strategic needs.

Equities researchers at Compass Point began coverage on shares of MARA (NASDAQ:MARA - Get Free Report) in a note issued to investors on Tuesday, Zacks reports. The brokerage set a "strong-buy" rating on the business services provider's stock.

A number of other equities analysts have also recently weighed in on MARA. Piper Sandler reaffirmed an "overweight" rating and issued a $11.00 price target (down from $13.00) on shares of MARA in a report on Tuesday, October 20th. Cantor Fitzgerald dropped their price objective on MARA from $14.00 to $12.00 and set an "overweight" rating on the stock in a report on Friday, August 7th. Guggenheim restated a "neutral" rating on shares of MARA in a research report on Tuesday. HC Wainwright began coverage on MARA in a research note on Friday, September 11th. They set a "buy" rating and a $20.00 target price for the company. Finally, JPMorgan Chase & Co. lowered MARA from an "overweight" rating to an "underweight" rating and decreased their target price for the company from $13.00 to $11.00 in a research report on Monday, September 14th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, one has given a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $16.22.

MARA Stock Up 10.5%

NASDAQ:MARA opened at $7.34 on Tuesday. The company has a debt-to-equity ratio of 1.15, a current ratio of 0.89 and a quick ratio of 0.89. MARA has a 1-year low of $5.69 and a 1-year high of $16.43. The company has a 50-day moving average of $9.73 and a 200 day moving average of $10.65. The firm has a market cap of $2.84 billion, a PE ratio of -0.90 and a beta of 5.23.

MARA (NASDAQ:MARA - Get Free Report) last posted its earnings results on Monday, November 9th. The business services provider reported $1.28 EPS for the quarter, beating analysts' consensus estimates of ($0.39) by $1.67. The business had revenue of $164.23 million for the quarter, compared to the consensus estimate of $183.24 million. MARA had a negative net margin of 411.23% and a negative return on equity of 37.38%. As a group, research analysts anticipate that MARA will post -2.38 EPS for the current fiscal year.

Insider Transactions at MARA

In other news, CFO Salman Khan sold 16,000 shares of the stock in a transaction on Monday, August 17th. The stock was sold at an average price of $9.21, for a total transaction of $147,360.00. Following the completion of the transaction, the chief financial officer directly owned 377,066 shares in the company, valued at approximately $3,472,777.86. This represents a 4.07% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Frederick Thiel sold 27,505 shares of the firm's stock in a transaction dated Monday, November 2nd. The stock was sold at an average price of $6.79, for a total value of $186,758.95. Following the sale, the chief executive officer directly owned 4,149,585 shares of the company's stock, valued at $28,175,682.15. The trade was a 0.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 134,396 shares of company stock worth $1,311,490. 0.97% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On MARA

A number of hedge funds have recently made changes to their positions in the stock. Ascentis Independent Advisors purchased a new stake in MARA in the first quarter valued at approximately $28,000. IFP Advisors Inc increased its holdings in shares of MARA by 1,154.9% in the second quarter. IFP Advisors Inc now owns 2,422 shares of the business services provider's stock valued at $34,000 after purchasing an additional 2,229 shares during the period. Mirae Asset Global Investments Co. Ltd. purchased a new stake in shares of MARA during the third quarter worth approximately $37,000. MassMutual Private Wealth & Trust FSB raised its stake in shares of MARA by 58.2% during the third quarter. MassMutual Private Wealth & Trust FSB now owns 4,009 shares of the business services provider's stock worth $45,000 after purchasing an additional 1,475 shares during the last quarter. Finally, Activest Wealth Management lifted its holdings in shares of MARA by 300.0% during the third quarter. Activest Wealth Management now owns 4,000 shares of the business services provider's stock worth $45,000 after purchasing an additional 3,000 shares during the period. Hedge funds and other institutional investors own 44.53% of the company's stock.

Key Stories Impacting MARA

Here are the key news stories impacting MARA this week:

• Positive Sentiment: MARA authorized a discretionary share repurchase program of up to $500 million, which could signal management confidence and provide support for the stock. Article: MARA Holdings advances after Q3 results and buyback plan
• Positive Sentiment: The company sold 13,597 BTC for about $1.1 billion and used $750 million to repay its bitcoin-collateralized loans. The paydown reduces leverage and frees bitcoin previously pledged as collateral. Article: MARA dumps Bitcoin to erase collateral risk
• Neutral Sentiment: MARA is positioning its power assets for AI and data-center demand, with roughly 1 GW of capacity and a goal of exceeding 4 GW. That could diversify revenue beyond mining, but execution and financing will matter. Article: MARA touts AI demand and targets a 4 GW power portfolio
• Negative Sentiment: Third-quarter revenue was about $164 million, down 35% year over year and below analyst expectations. The reported profit was substantially supported by gains in bitcoin’s value, making the headline earnings beat less indicative of underlying operating performance. Article: MARA buyback boosts shares; what investors need to know
• Negative Sentiment: Management indicated more bitcoin sales may follow to fund strategic needs, which could reduce exposure to future bitcoin appreciation. Rosenblatt also lowered its price target from $15 to $11, while retaining a Buy rating. Article: MARA sold bitcoin and plans further sales

MARA Company Profile

MARA Holdings, Inc., formerly known as Marathon Digital Holdings, is a digital energy and infrastructure company focused primarily on Bitcoin mining. It develops and operates data-center infrastructure and specialized computing systems used to validate transactions on the Bitcoin network and earn bitcoin rewards. The company also works on energy-related strategies to support its computing operations, including using energy sources and infrastructure that can help power data centers. Its operations are concentrated in the United States, with expansion into international markets.

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