Is Marathon Digital Holdings Inc. (MARA) A Risky Investment?

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Marathon Digital Holdings Inc. (NASDAQ:MARA) finished Thursday with a subtraction of -$0.33 to close at $10.52, a downside of -3.04 percent. An average of 13,973,440 shares of common stock have been traded in the last five days. There was a fall of -$1.55 in the past week, and it reached a new high 16 times over the past 12 months. The last 20 days have seen an average of 15,098,400 shares traded, while the 50-day average volume stands at 20,756,939.

MARA stock has decreased by -23.27% in the last month. The company shares reached their 1-month lowest point of $10.08 on 09/22/22. With the stock rallying to its 52-week high on 01/04/22, shares of the company touched a low of $5.20 and a high of $83.45 in 52 weeks. It has reached a new high 2 times so far this year and lost -67.99% or -$22.34 in price. In spite of this, the price is down -87.39% from the 52-week high.


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Insider Transactions

269 days have passed since Marathon Digital Holdings Inc. (MARA) last reported insider trading activity. OKAMOTO MERRICK D, who is Executive Chairman, most recently acquired $83,333 shares at $37.02 per share on Dec 28.

Valuation Metrics

Marathon Digital Holdings Inc. (MARA) stock’s beta is 5.34. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 7.20, the price-to-book (PB) ratio at 1.74.

Financial Health

The quick ratio of Marathon Digital Holdings Inc. for the three months ended June 29 was 4.00, and the current ratio was 4.00, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 1.11 and a total debt to equity ratio of 1.16 for the quarter ending June 29. Its gross profit as reported stood at $116.77 million compared to revenue of $150.46 million.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Marathon Digital Holdings Inc.’s return on assets was -16.70%.

Earnings Surprise

For the three-month period that ended June 29, Marathon Digital Holdings Inc. had $259.03 million in cash and short-term investments compared to $729.38 million in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of -$12.96 million in the quarter, while revenues of $11.53 million were grew 743.21%. The analyst consensus anticipated Marathon Digital Holdings Inc.’s latest quarter earnings to come in at -$0.25 per share, but it turned out to be -$1.75, a -600.00% surprise. For the quarter, EBITDA amounted to -$141.69 million. Shareholders own equity worth $116.81 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Marathon Digital Holdings Inc. (MARA) price momentum. RSI 9-day as of the close on 22 September was 36.39%, suggesting the stock is Neutral, with historical volatility in this time frame at 77.67%.

As of today, MARA’s price is $10.68 -12.84% or -$1.55 from its 5-day moving average. MARA is currently trading -23.66% lower than its 20-day SMA and -32.56% lower than its 100-day SMA. However, the stock’s current price level is +35.57% above the SMA50 and -74.84% below the SMA200.

The stochastic %K and %D were 7.32% and 6.74%, respectively, and the average true range (ATR) was 1.13. With the 14-day stochastic at 8.68% and the average true range at 1.21, the RSI (14) stands at 40.43%. The stock has reached -1.16 on the 9-day MACD Oscillator while the 14-day reading was at -1.38.

Analyst Ratings

Cowen launched coverage on Marathon Digital Holdings Inc. (NASDAQ: MARA) in its analyst report released on June 24, 2022. The firm assigned the stock a Market perform rating. The consensus rating for Marathon Digital Holdings Inc. (MARA) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell MARA, while 2 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 6 others rate it as a “buy”.

What is MARA’s price target for the next 12 months?

Analysts predict a range of price targets between $9.00 and $35.00, with a median target of $19.50. Taking a look at these predictions, the average price target given by analysts for Marathon Digital Holdings Inc. (MARA) stock is $20.38.

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