MARA Holdings (MARA) Stock Jumps 10% After Morgan Stanley Nearly Doubles Price Target
Key Takeaways
- •Morgan Stanley raised its price target on MARA to $11 from $6 while maintaining an Underweight rating, and the stock still jumped more than 10% to $12.61 in Friday morning trading.
- •H.C. Wainwright initiated coverage with a Buy rating and a $20 price target, citing MARA's shift from Bitcoin mining toward AI data center infrastructure, including a pending Long Ridge Energy acquisition and a Starwood Capital joint venture.
- •Analyst sentiment is sharply divided, with eight Buy ratings, one Hold, three Sell ratings, a consensus price target of $18.70, and individual targets ranging from $11 to $27.
- •The rally occurred despite a weak recent quarter in which MARA reported a $1.60 per-share loss against an expected $0.17 profit, with revenue of $174.88 million missing the $209.44 million consensus and falling 26.7% year over year.
- •Insiders sold $613,193 in stock over the past 90 days, while institutional investors hold 44.53% of shares, including a new roughly $3.5 million stake from Winton Group in the second quarter.
MARA Holdings stock jumped more than 10% in Friday morning trading, reaching $12.61, after Morgan Stanley nearly doubled its price target on the company to $11 from $6. The bank kept its Underweight rating, but the target revision alone was enough to turn heads — especially given that even the raised target sits below where shares were changing hands on Friday.
Marathon Digital Holdings, Inc. (MARA) opened the session at $12.12, up from a prior close of $11.64, and traded on heavy volume, with more than 8.5 million shares changing hands early in the day.
Break Above Key Resistance
The $12 level had acted as a ceiling for the stock across multiple prior sessions. Breaking above it triggered additional buying, and with September 18 also serving as an expiration date for $12 strike call options, that likely added fuel to the move. Heavily traded strikes can shape price action around expiration as options dealers adjust their hedges, which is why such dates tend to draw extra attention from active traders.
Broader Wall Street Attention
Morgan Stanley was not the only firm paying closer attention to the company. H.C. Wainwright initiated coverage with a Buy rating and a $20 price target, pointing to roughly 68% upside potential. The firm's thesis centers on MARA's shift away from Bitcoin mining toward AI data center infrastructure, a theme that fits a wider industry conversation in which miners with large energy portfolios are increasingly assessed for their ability to host high-performance computing workloads.
That pivot includes a pending acquisition of Long Ridge Energy and a joint venture with Starwood Capital to repurpose mining sites into high-performance computing facilities. H.C. Wainwright sees that repositioning as the core value driver, and with the Long Ridge acquisition still pending, its progress is the most concrete milestone to track as the transition moves from announcement to execution.
Analyst sentiment remains mixed overall. Eight analysts carry Buy ratings, one has a Hold, and three have Sell ratings. The consensus price target sits at $18.70, well above where the stock was trading on Friday. JPMorgan kept its Underweight rating and cut its price target to $11 from $13, while Rosenblatt and BTIG both hold Buy ratings, with targets of $15 and $27, respectively — an $11-to-$27 range that captures how sharply analyst opinion splits on the company's direction.
Earnings Miss Still Fresh
The rally came despite a rough most recent quarter. MARA reported a loss of $1.60 per share when analysts had expected earnings of $0.17. Revenue came in at $174.88 million, missing the $209.44 million consensus by a wide margin. The contrast between those trailing numbers and Friday's rally highlights how much of the current analyst debate centers on the company's planned transition rather than its most recent results.
Revenue was also down 26.7% compared with the same quarter last year. A year ago, the company earned $1.84 per share. Analysts currently forecast a full-year loss of $1.65 per share, which sets the benchmark for the company's upcoming reports.
Insider Selling and Institutional Ownership
Insider selling has also been a factor. Over the past 90 days, insiders sold $613,193 worth of stock. Director Douglas Mellinger sold 7,000 shares at $16.00 in June, and General Counsel Zabi Nowaid sold 8,376 shares at $12.00 in August.
Institutional investors own 44.53% of the stock. Several funds added new positions in the second quarter, including Winton Group, which took a stake worth approximately $3.5 million.
Key Metrics and Market Context
The stock's 50-day moving average stands at $11.15, and its 200-day moving average is $11.45, both below Friday's price and leaving the shares trading above widely watched trend levels. MARA carries a debt-to-equity ratio of 1.15 and a market capitalization of approximately $4.83 billion.
The broader market on Friday was relatively flat, with the Nasdaq edging slightly higher while the S&P 500 and Dow dipped into negative territory.
This article is based on reporting by CoinCentral.
