TLDR:
- Marathon Digital Holdings (MARA) stock saw increased trading activity and price gains.
- Bitcoin surpassed $66,000, boosting crypto-related stocks.
- Analysts have mixed ratings on MARA, with price targets ranging from $12 to $27.
- Institutional investors made significant changes to their MARA holdings.
- MARA reported lower-than-expected Q2 earnings but increased revenue year-over-year.
Marathon Digital Holdings, Inc. (NASDAQ:MARA) shares experienced a significant uptick on Monday, October 14, 2024, as the cryptocurrency market showed signs of renewed strength. The stock gapped up prior to trading, opening at $16.79 after closing at $16.08 the previous day. By midday, MARA was trading at $16.87, representing a 5.6% increase.
The surge in Marathon Digital’s stock price coincided with Bitcoin’s climb above $66,000 for the first time since late September. This movement in the cryptocurrency market has sparked increased interest in crypto-adjacent stocks, with Marathon Digital being a primary beneficiary.
Trading volume for MARA was notably high, with over 12 million shares changing hands by midday. This elevated activity was accompanied by a surge in options trading, particularly in call options. The October 18 and 19-strike calls were among the most popular, indicating bullish sentiment among traders.
Despite the day’s gains, Marathon Digital’s stock remains down 25.8% year-to-date. However, it’s important to note that the stock is still up 126.3% over the past year, reflecting the volatile nature of cryptocurrency-related investments.
Analyst opinions on Marathon Digital remain mixed. Recent coverage initiations and updates have resulted in a range of recommendations and price targets. B. Riley raised their price target from $18 to $20, maintaining a neutral rating.
Cantor Fitzgerald initiated coverage with an “overweight” rating and a $21 price target. Macquarie also began coverage with an “outperform” rating and a $22 price target. On the other hand, JPMorgan Chase & Co. lowered their price target from $14 to $12, assigning an “underweight” rating.
The company’s most recent earnings report, released on August 1, 2024, showed mixed results. Marathon Digital reported earnings per share of -$0.72, missing analyst estimates of -$0.23. However, the company’s revenue for the quarter was $145.14 million, representing a 77.5% increase year-over-year, although it fell short of the expected $157.86 million.
Institutional investors have been active in adjusting their positions in Marathon Digital. Notable changes include SG Americas Securities LLC reducing its stake by 71.6%, while other firms like Beaird Harris Wealth Management LLC and GAMMA Investing LLC increased their holdings.
Insider activity has also been noteworthy, with CFO Salman Hassan Khan and CEO Frederick G. Thiel both selling shares in September. Khan sold 16,700 shares at $15.70 per share, while Thiel sold 27,512 shares at the same price.
As of the latest reporting, Marathon Digital Holdings has a market capitalization of $4.80 billion, with a price-to-earnings ratio of 7.90 and a beta of 5.50, indicating high volatility relative to the broader market.
The company, headquartered in Fort Lauderdale, Florida, operates as a digital asset technology company focusing on the Bitcoin ecosystem. Previously known as Marathon Patent Group, Inc., the firm changed its name to Marathon Digital Holdings, Inc. in February 2021.
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