Marathon Digital Holdings Inc. (NASDAQ: MARA) Rise 4.64%, Now What? Don’t Panic
MD: My brother is a brilliant investor (i.e. gambler). He called to inform me about MARA. Let’s see what we think.
Marathon Digital Holdings Inc. (NASDAQ:MARA) price on Wednesday, July 19, rose 4.64% above its previous day’s close as an upside momentum from buyers pushed the stock’s value to $17.59.
MD: I presume we’re supposed to know about MARA already (i.e. COIK: Clear Only If Known). Let’s see how far we can get before we have to do our homework. Reaching into my pocket I have the $0.59. The $17 may be more problematic.
A look at the stock’s price movement, the close in the last trading session was $16.81. Turning to its 52-week performance, $19.88 and $3.11 were the 52-week high and 52-week low respectively. Overall, MARA moved 76.25% over the past month.
MD: I’m one of those gamblers that buys at $19.88 and sells at $3.11. I quit gambling long ago. Before I quit I even started betting against myself. I was still always wrong. Go figure.
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MD: Just like with money, everybody seems to be clueless about AI. You don’t get smart by contemplating your navel… or contemplating everybody else’s navel. They should call it AS… Artificial Stupidity. And there is more than enough RS (real stupidity) to go around.
Marathon Digital Holdings Inc.’s market cap currently stands at around $2.99 billion.
MD: Let’s see. $2.99B divided by $17.59… That means they’ve divided this fiction into 170 million pieces. Likely they’ve kept 50 million for themselves for which they paid nothing. And found other suckers to buy into their get rich scheme to the total tune of 120 million pieces. What’s not to love about leverage when it comes to finance.
Analysts project the company’s earnings per share (EPS) to be -$0.02, which has seen fiscal year 2023 EPS growth forecast to increase to $0.14 and about $0.49 for fiscal year 2024. Per the data, EPS growth is expected to be 104.50% for 2023 and 250.00% for the next financial year.
MD: Wow. The power of big numbers. Earning 2 cents a share… but times 120M shares, we’re talking real money… who said that, Everette Dirkson? And there are people out there that think “regulation” is the antidote for this, right? Wrong! It’s the enabler.
Analysts have a consensus estimate of $92.65 million for the company’s revenue for the quarter, with a low and high estimate of $78.29 million and $111.2 million respectively. The average forecast suggests up to a 271.80% growth in sales growth compared to quarterly growth in the same period last fiscal year. Wall Street analysts have also projected the company’s year-on-year revenue for 2023 to grow to $431.33 million, representing a 266.30% jump on that reported in the last financial year.
MD: It’s amazing we can be this far into this article and still be clueless about the “value proposition”. I guess everybody reading this already knows what’s going on here. We’re probably too dumb to be even reading this… let alone getting in on the game.
Revisions could be used as tool to get short term price movement insight, and for the company that in the past seven days was no upward and no downward review(s). Turning to the stock’s technical picture we see that short term indicators suggest on average that MARA is a 100% Buy. On the other hand, the stock is on average a 100% Buy as suggested by medium term indicators while long term indicators are putting the stock in 100% Buy category.
MD: A 100% Buy. What could possibly go wrong? We’ll reserve comment until we get to something of substance, ok?
6 analyst(s) have given their forecast ratings for the stock on a scale of 1.00-5.00 for a strong buy to strong sell recommendation. A total of 3 analyst(s) rate the stock as a Hold, 3 recommend MARA as a Buy and 0 give it an Overweight rating. Meanwhile, 0 analyst(s) rate the stock as Underweight and 0 say it is a Sell. As such, the average rating for the stock is Overweight which could provide an opportunity for investors keen on increasing their holdings of the company’s stock.
MARA’s current price about 17.67% and 50.35% off the 20-day and 50-day simple moving averages respectively. The Relative Strength Index (RSI, 14) currently prints 65.45, while 7-day volatility ratio is 9.73% and 10.73% in the 30-day chart. Further, Marathon Digital Holdings Inc. (MARA) has a beta value of 5.04, and an average true range (ATR) of 1.40. Analysts have given the company’s stock an average 52-week price target of $13.10, forecast between a low of $7.98 and high of $20.00. Looking at the price targets, the low is 54.63% off current price level while to achieve the yearly target high, price needs to move -13.7%. Nonetheless, investors will most likely welcome a 23.25% jump to $13.50 which is the analysts’ median price.
In the market, a comparison of Marathon Digital Holdings Inc. (MARA) and its peers suggest the former has performed considerably stronger. Data shows MARA’s intraday price has changed 4.64% in last session and 80.23% over the past year. Elsewhere, the overall performance for the S&P 500 and Dow Jones Industrial shows that the indexes are up 0.24% and 0.31% respectively in the last trading.
If we refocus on Marathon Digital Holdings Inc. (NASDAQ:MARA), historical trading data shows that trading volumes averaged 49.88 million over the past 10 days and 40.28 million over the past 3 months. The company’s latest data on shares outstanding shows there are 169.97 million shares.
The 0.20% of Marathon Digital Holdings Inc.’s shares are in the hands of company insiders while institutional holders own 37.50% of the company’s shares. Also important is the data on short interest which shows that short shares stood at 42.15 million on Jun 29, 2023, giving us a short ratio of 0.92. The data shows that as of Jun 29, 2023 short interest in Marathon Digital Holdings Inc. (MARA) stood at 24.80% of shares outstanding, with shares short falling to 43.09 million registered in May 30, 2023. Current price change has pushed the stock 414.33% YTD, which shows the potential for further growth is there. It is this reason that could see investor optimism for the MARA stock continues to rise going into the next quarter.
MD: Nope! We still have no clue what they do. Looks like we’ll have to find another article. This may not publish.