Sun, June 16, 2024

Marathon Digital Sees 5.6% Stock Rise, Mixed Analyst Reviews

Broker News, asml, marathon

Quick Look:

  • Marathon Digital’s shares rose by 5.6% to $21.21, with reduced trading volume at 46.6M shares.
  • Analysts showed mixed views, with price targets ranging from $16.50 to $27.00.
  • EPS was -$0.02, missing estimates; revenue surpassed expectations at $156.77M.

Marathon Digital Holdings (NASDAQ: MARA) experienced a notable uptick in its stock performance, with shares rising by 5.6% to reach a high of $21.73 before settling at $21.21 in the latest trading session. This increase came after a previous close at $20.08, showcasing a significant upward momentum for the company. Despite this positive movement, trading volume declined to 46,639,800 shares, falling short of the average volume of 67,641,313 shares by 31%.

Analysts Offer Mixed Ratings, Target Prices Vary

The company has garnered mixed reactions from analysts recently. JPMorgan Chase & Co. maintained an ‘Underweight’ rating, albeit with a slight increase in their target price from $16.00 to $16.50 as of their April 10, 2024 report. C

onversely, HC Wainwright exhibited a more optimistic stance despite reducing their price objective from $35.00 to $27.00, reaffirming a ‘Buy’ rating in their May 10, 2024 report. Chardan Capital echoed a more cautious approach, downgrading their price target from $30.00 to $21.00 while maintaining a ‘Neutral’ rating per their May 8, 2024, analysis. B. Riley also demonstrated a tempered outlook, adjusting their price objective from $19.00 to $18.00 and keeping a ‘Neutral’ rating in their latest report.

Q1 Revenue Surges 223% to $165.2M, Net Income Up 184%

Regarding financial performance, Marathon Digital’s earnings report released on February 28, 2024, revealed an EPS of -$0.02, falling short of the consensus estimate of $0.05. However, the company’s revenue surged to $156.77 million, surpassing the expected $138.15 million. The company’s net margin was an impressive 106.46% despite a negative return on equity of 3.80%. The current fiscal year’s EPS forecast is -$0.17.

Institutional Holdings Increase by 29.7%, Led by Vanguard

Institutional investors have shown increased interest in Marathon Digital. The Vanguard Group, Inc. boosted its holdings by 5.7%, now owning 18,523,195 shares valued at $157,447,000. Charles Schwab Investment Management, Inc. significantly increased its position by 29.0%, owning 1,823,739 shares worth $42,840,000.

Mirae Asset Global Investments Co., Ltd. also raised its stake by 29.7%, holding 1,295,391 shares valued at $30,429,000. Victory Capital Management, Inc. increased its holdings by 57.2% to 29,204 shares, valued at $686,000. Notably, International Assets Investment Management LLC established a new position valued at $930,000. Institutional ownership now stands at 44.53%.

Analyst Insights and Recommendations

Recent analyses highlight Marathon Digital’s remarkable growth metrics. David Moadel of InvestorPlace, in an article published 22 hours ago, emphasised the company’s substantial top-and-bottom-line growth in its quarterly report. Marathon Digital’s revenue in the first quarter of 2024 surged by 223% to $165.2 million, while net income increased by 184% to $337.2 million. Adjusted EBITDA soared by 266% to $528.8 million.

Despite concerns about the impending Bitcoin halving event in April, Moadel believes Marathon Digital will maintain strong financial health, suggesting its trailing 12-month P/E ratio, ranging from 8.62x to 12.28x, compares favourably against competitors like Riot Platforms and CleanSpark. He recommends investors conduct thorough due diligence and consider adding Marathon Digital shares to their portfolios.

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