MARA (NASDAQ:MARA) Stock Jumps 10.5% Following Better-Than-Expected Earnings

MARA Holdings (NASDAQ:MARA) shot up 10.5% during trading on Tuesday following a better than expected earnings announcement. The stock traded as high as $7.58 and last traded at $7.34. 65,882,425 shares traded hands during trading, an increase of 46% from the average daily 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, topping analysts’ consensus estimates of ($0.39) by $1.67. MARA had a negative return on equity of 26.05% and a negative net margin of 429.71%. The firm had revenue of $164.23 million for the quarter, compared to analyst estimates of $183.24 million.

More MARA News

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

Analyst Upgrades and Downgrades

MARA has been the topic of a number of recent research reports. Rosenblatt Securities lowered their price target on shares of MARA from $15.00 to $11.00 and set a “buy” rating on the stock in a research report on Tuesday. Morgan Stanley set a $10.00 price objective on shares of MARA and gave the company an “underweight” rating in a report on Friday, October 9th. Weiss Ratings downgraded shares of MARA from a “sell (d)” rating to a “sell (d-)” rating in a report on Friday, October 23rd. JPMorgan Chase & Co. lowered shares of MARA from an “overweight” rating to an “underweight” rating and decreased their target price for the stock from $13.00 to $11.00 in a research note on Monday, September 14th. Finally, Compass Point restated a “buy” rating and set a $20.00 target price on shares of MARA in a report on Tuesday. Seven research analysts have rated the stock with a Buy rating, one has given a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $16.22.

Insider Activity

In related news, General Counsel Zabi Nowaid sold 8,376 shares of the company’s stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $12.00, for a total value of $100,512.00. Following the completion of the sale, the general counsel owned 898,780 shares of the company’s stock, valued at approximately $10,785,360. This represents a 0.92% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Salman Khan sold 16,000 shares of the firm’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 sale, the chief financial officer owned 377,066 shares of the company’s stock, valued at approximately $3,472,777.86. The trade was a 4.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 134,396 shares of company stock valued at $1,311,490. 0.97% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in MARA. IFP Advisors Inc lifted its stake in shares of MARA by 1,154.9% in the 2nd quarter. IFP Advisors Inc now owns 2,422 shares of the business services provider’s stock valued at $34,000 after purchasing an additional 2,229 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. acquired a new stake in shares of MARA during the 3rd quarter worth about $37,000. Ascentis Independent Advisors acquired a new stake in shares of MARA during the 1st quarter worth about $28,000. CoreCap Advisors LLC increased its position in shares of MARA by 128.0% during the 2nd quarter. CoreCap Advisors LLC now owns 3,651 shares of the business services provider’s stock worth $51,000 after purchasing an additional 2,050 shares during the last quarter. Finally, Activest Wealth Management raised its holdings in MARA by 300.0% in the 3rd quarter. Activest Wealth Management now owns 4,000 shares of the business services provider’s stock valued at $45,000 after buying an additional 3,000 shares during the period. 44.53% of the stock is currently owned by institutional investors and hedge funds.

MARA Stock Performance

The stock has a market capitalization of $2.84 billion, a PE ratio of -0.80 and a beta of 5.23. The firm’s fifty day moving average is $9.80 and its 200-day moving average is $10.66. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 1.15.

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.