MARA Holdings (NASDAQ:MARA – Get Free Report)’s share price rose 10.5% during mid-day trading on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $7.58 and last traded at $7.34. Approximately 65,882,425 shares were traded during mid-day trading, an increase of 46% from the average session volume of 45,013,898 shares. The stock had previously closed at $6.64.
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 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 429.71% and a negative return on equity of 26.05%.
Key Stories Impacting MARA
Here are the key news stories impacting MARA this week:
- Positive Sentiment: MARA authorized a discretionary $500 million share-repurchase program and said it repaid all $750 million of its Bitcoin-backed loans after the quarter. The repayment released pledged Bitcoin collateral and reduced leverage, helping reassure investors about its balance sheet. MARA jumps as buyback approval and debt payoff overshadow weaker revenue
- Positive Sentiment: The company is positioning its power assets for AI and data-center demand, targeting a portfolio exceeding 4 gigawatts from roughly 1 gigawatt currently. It also aims to sign two leases before year-end; successful deals could diversify revenue beyond Bitcoin mining. MARA Holdings touts AI demand and a 4 GW power portfolio
- Neutral Sentiment: Analysts offered mixed signals: Rosenblatt lowered its price target from $15 to $11 but maintained a Buy rating, while Guggenheim reaffirmed Neutral. MARA Holdings buyback boosts shares
- Negative Sentiment: Third-quarter revenue fell 35% year over year to about $164 million, below estimates. Mining revenue also declined as weaker Bitcoin prices and higher energy costs offset increased production. The reported profit was substantially supported by an unrealized gain on Bitcoin, rather than operating strength. HIVE and MARA mine more Bitcoin but earn less
- Negative Sentiment: MARA sold 13,597 BTC for about $1.1 billion to repay loans and indicated more sales may follow to fund AI infrastructure and other priorities. Debt reduction is positive, but continued Bitcoin sales could limit exposure to potential coin-price gains and may raise questions about financing the pivot. MARA sold 13,597 BTC and plans to sell more
Analysts Set New Price Targets
MARA has been the subject of a number of research reports. Guggenheim restated a “neutral” rating on shares of MARA in a report on Tuesday. JPMorgan Chase & Co. cut shares of MARA from an “overweight” rating to an “underweight” rating and decreased their price target for the company from $13.00 to $11.00 in a research report on Monday, September 14th. Piper Sandler reissued an “overweight” rating and issued a $11.00 price target (down from $13.00) on shares of MARA in a research report on Tuesday, October 20th. Rosenblatt Securities reduced their price objective on MARA from $15.00 to $11.00 and set a “buy” rating on the stock in a research note on Tuesday. Finally, Weiss Ratings lowered MARA from a “sell (d)” rating to a “sell (d-)” rating in a report on Friday, October 23rd. Seven analysts have rated the stock with a Buy rating, one has issued a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, MARA presently has a consensus rating of “Hold” and an average price target of $16.22.
View Our Latest Analysis on MARA
Insider Activity
In other news, CFO Salman Khan sold 16,000 shares of the company’s stock in a transaction dated 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 of the company’s stock, valued at approximately $3,472,777.86. This represents a 4.07% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Frederick G. Thiel sold 27,505 shares of the stock in a transaction dated Monday, November 2nd. The shares were sold at an average price of $6.79, for a total value of $186,758.95. Following the completion of the transaction, the chief executive officer owned 4,149,585 shares in the company, valued at approximately $28,175,682.15. The trade was a 0.66% decrease in their position. 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 three months, insiders have sold 134,396 shares of company stock worth $1,311,490. 0.97% of the stock is currently owned by corporate insiders.
Hedge Funds Weigh In On MARA
Hedge funds have recently added to or reduced their stakes in the stock. Public Sector Pension Investment Board lifted its position in shares of MARA by 12.1% during the 3rd quarter. Public Sector Pension Investment Board now owns 2,033,777 shares of the business services provider’s stock worth $23,043,000 after buying an additional 219,097 shares during the last quarter. Principal Financial Group Inc. raised its stake in MARA by 2.0% during the 1st quarter. Principal Financial Group Inc. now owns 1,838,149 shares of the business services provider’s stock worth $14,999,000 after acquiring an additional 35,978 shares in the last quarter. Hsbc Holdings PLC raised its stake in MARA by 11.5% during the 1st quarter. Hsbc Holdings PLC now owns 634,172 shares of the business services provider’s stock worth $5,099,000 after acquiring an additional 65,220 shares in the last quarter. Delta Global Management LP purchased a new stake in MARA in the first quarter valued at $5,064,000. Finally, Compass Rose Asset Management LP purchased a new stake in MARA in the first quarter valued at $4,243,000. 44.53% of the stock is currently owned by hedge funds and other institutional investors.
MARA Trading Up 10.5%
The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 1.15. The stock has a market capitalization of $2.84 billion, a PE ratio of -0.80 and a beta of 5.23. The business’s 50-day moving average is $9.80 and its two-hundred day moving average is $10.66.
About MARA
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.
Featured Articles
- Five stocks we like better than MARA
- Why Kinder Morgan’s Chairman Just Bought $15 Million in Stock
- Rocket Lab’s Record Backlog Could Fuel a Rebound, But Neutron Raises the Stakes
- Don’t Let Their Low Yields Fool You: 3 Dividend Stocks Worth Watching
- A $4 Billion Jolt: NRG Energy Powers Data Center Ambitions
Receive News & Ratings for MARA Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for MARA and related companies with MarketBeat.com's FREE daily email newsletter.
