MARA (NASDAQ:MARA) Stock Falls 6% Following Analyst Downgrade

Key Points

• MARA shares fell 6% to $7.20 after JPMorgan cut its price target from $11 to $9 and maintained an Underweight rating.
• Analyst opinions remain mixed: seven rate the stock Buy, one Hold and three Sell; the consensus rating is Hold, with a $16 average price target.
• MARA reported quarterly EPS of $1.28, above estimates, but revenue of $164.23 million fell short of the $183.24 million consensus.

Shares of MARA Holdings (NASDAQ:MARA - Get Free Report) dropped 6% during trading on Thursday after JPMorgan Chase & Co. lowered their price target on the stock from $11.00 to $9.00. JPMorgan Chase & Co. currently has an underweight rating on the stock. MARA traded as low as $7.06 and last traded at $7.20. Approximately 43,932,056 shares changed hands during trading, a decline of 2% from the average daily volume of 45,049,320 shares. The stock had previously closed at $7.66.

Several other equities research analysts also recently issued reports on the stock. Compass Point restated a "buy" rating and issued a $20.00 price objective on shares of MARA in a research note on Tuesday. Weiss Ratings raised shares of MARA from a "sell (d-)" rating to a "sell (d)" rating in a research report on Tuesday. Rosenblatt Securities cut their target price on shares of MARA from $15.00 to $11.00 and set a "buy" rating for the company in a research note on Tuesday. HC Wainwright initiated coverage on shares of MARA in a research note on Friday, September 11th. They set a "buy" rating and a $20.00 target price for the company. Finally, Piper Sandler reissued 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. Seven equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $16.00.

Insider Activity at MARA

In related news, General Counsel Zabi Nowaid sold 8,376 shares of the company's stock in a transaction on Friday, August 21st. The stock was sold at an average price of $12.00, for a total value of $100,512.00. Following the completion of the transaction, the general counsel directly owned 898,780 shares in the company, valued at approximately $10,785,360. This represents a 0.92% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Salman Khan sold 16,000 shares of the firm's stock in a transaction on Monday, August 17th. The stock was sold at an average price of $9.21, for a total value of $147,360.00. Following the completion of the transaction, the chief financial officer directly owned 377,066 shares of the company's stock, valued at approximately $3,472,777.86. This trade represents a 4.07% 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. Over the last ninety days, insiders sold 134,396 shares of company stock worth $1,311,490. 0.97% of the stock is owned by corporate insiders.

Key MARA News

These are some of the MARA news items that stood out recently:

• Positive Sentiment: MARA’s $500 million share-repurchase authorization and sale of about $1.1 billion in Bitcoin to repay Bitcoin-backed debt have supported investor sentiment by reducing financing risk and returning capital to shareholders. Its third-quarter net income was $632.1 million, largely reflecting digital-asset gains, while revenue fell 35% year over year. Article: MARA Holdings turned $1.1 billion in Bitcoin into debt relief and buybacks
• Negative Sentiment: Revenue declined sharply year over year, and Needham cut earnings estimates after MARA missed its Q3 mining revenue and EBITDA forecasts. That weakness raises concerns about near-term operating performance even as the company pursues high-performance computing leases. Article: Needham cuts MARA estimates after Q3 mining miss
• Negative Sentiment: Analyst views are mixed: JPMorgan lowered its price target to $9 and kept an Underweight rating, while Guggenheim assigned a Neutral rating. Such caution may temper enthusiasm around the buyback and longer-term AI opportunity. Article: MARA earns Neutral rating from Guggenheim

Hedge Funds Weigh In On MARA

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Delta Global Management LP bought a new stake in MARA in the first quarter valued at about $5,064,000. Compass Rose Asset Management LP bought a new position in shares of MARA during the 1st quarter worth approximately $4,243,000. Compass Financial Management LLC bought a new position in shares of MARA during the second quarter valued at $6,000,000. Edgestream Partners L.P. acquired a new position in MARA in the third quarter valued at about $4,679,000. Finally, WINTON GROUP Ltd bought a new stake in MARA during the 2nd quarter worth approximately $3,545,000. 44.53% of the stock is owned by institutional investors.

MARA Stock Performance

The company has a debt-to-equity ratio of 1.13, a current ratio of 2.31 and a quick ratio of 0.89. The company has a market capitalization of $2.78 billion, a price-to-earnings ratio of -0.88 and a beta of 5.23. The stock has a 50 day moving average price of $9.68 and a two-hundred day moving average price of $10.63.

MARA (NASDAQ:MARA - Get Free Report) last released its earnings results on Monday, November 9th. The business services provider reported $1.28 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.39) by $1.67. The company 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 37.75%. On average, analysts predict that MARA Holdings will post -2.38 EPS for the current fiscal year.

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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