Shares of Marathon Digital Holdings, Inc. (NASDAQ: MARA) experienced a significant increase of 11.3% on Monday after an upgrade from Compass Point, which raised its rating from neutral to buy. Following this upgrade, Compass Point set a price target of $30.00 for the stock. During the trading session, shares reached a high of $11.28 and closed at $11.21, reflecting notable investor interest.
Trading volume for Marathon Digital reached 52,955,055 shares, marking a 14% increase compared to the average session volume of 46,572,457 shares. The stock had previously closed at $10.07, indicating a strong market reaction to the analysts’ positive outlook.
Analyst Ratings and Market Reactions
Several other research firms have weighed in on Marathon Digital recently. BTIG Research reaffirmed a buy rating, issuing a price target of $27.00 in a note on September 5. On November 17, Weiss Ratings maintained a hold (C-) rating. Additionally, Macquarie raised its price target from $26.00 to $29.00, giving an outperform rating on October 22. In contrast, JPMorgan Chase & Co. lowered its price objective from $22.00 to $20.00, while maintaining an overweight rating on September 26. Cantor Fitzgerald also reduced its price target from $30.00 to $21.00 on November 5, yet still held an overweight rating.
Overall, eight research analysts have issued buy ratings for Marathon Digital, while five analysts have provided hold ratings. According to data from MarketBeat.com, the stock currently holds an average rating of “Moderate Buy” and an average target price of $23.50.
Institutional Investors Increase Holdings
Recent activity from institutional investors has further influenced the company’s stock dynamics. UBS Group AG increased its holdings in Marathon Digital by 104.1% during the third quarter, owning 12,098,686 shares valued at approximately $220.9 million after acquiring an additional 6,172,110 shares.
Other notable investments include Marex Group plc, which purchased a new stake valued at around $84.3 million in the second quarter, and Voloridge Investment Management LLC, which acquired a stake worth approximately $93.1 million in the third quarter. Vanguard Group Inc. raised its holdings by 9.8%, now owning 45,311,718 shares valued at $827.4 million following an additional purchase of 4,049,979 shares. Norges Bank also established a new position valued at approximately $59.3 million in the second quarter. Currently, institutional investors own 44.53% of Marathon Digital’s stock.
The company’s financial metrics indicate a debt-to-equity ratio of 0.47, with a current ratio and quick ratio both at 0.54. The stock’s 50-day moving average is $17.43, while its 200-day moving average stands at $16.59. With a market capitalization of $4.24 billion, Marathon Digital has a price-to-earnings ratio of 10.10 and a beta of 6.40.
On November 4, Marathon Digital announced its earnings, reporting a loss of ($0.32) earnings per share for the quarter, which fell short of analysts’ consensus estimates of ($0.26) by ($0.06). The company generated revenue of $252.41 million, slightly below the anticipated $254.58 million. With a net margin of 85.02% and a negative return on equity of 2.11%, analysts project that Marathon Digital Holdings will report earnings of ($1.04) per share for the current fiscal year.
Marathon Digital, headquartered in Fort Lauderdale, Florida, operates as a digital asset technology company focused on mining digital assets, primarily within the bitcoin ecosystem. Established in 2010, the company underwent a name change from Marathon Digital Holdings, Inc. to MARA Holdings, Inc. in August 2024.
