Sign InMARA Stock Analysis: Technicals show uptrend, but overvaluation suggests Hold rating
Summary
Based on technical and fundamental analysis, the article rates Marathon Digital Holdings, Inc. (MARA) as a Hold and predicts its stock price for the next trading day to be within the range of $11.50 to $12.50 (analysis conducted on June 22, 2023).
Introduction
Marathon Digital Holdings, Inc. (Ticker: MARA) is a company that operates in the cryptocurrency sector. In this analysis, we will explore the technical and fundamental aspects of the stock and use the available information to predict its price in the short term. Based on this analysis, we will provide our assessment of whether the stock is a Strong Sell, Sell, Hold, Buy, or Strong Buy.
Technical Analysis
MARA's stock price closed at $11.83 on June 22, 2023, down by 3.11% from its previous trading day. The stock traded in a price range between $11.14 and $12.68, with its 14-day relative strength index (RSI14) standing at 64. The 50-day moving average of $9.83 and the 200-day moving average of $8.62 indicate that the stock is currently in an uptrend.
The stock's 3-month moving average convergence/divergence (MACD) is 0.16, indicating positive momentum. However, it is worth noting that the stock is currently trading closer to its 52-week high of $18.88 than its 52-week low of $3.11, which suggests that there may be potential for a downtrend in the short term.
Fundamental Analysis
MARA has a market capitalization of approximately $1.98 billion, with 167.4 million shares outstanding. The company's earnings per share (EPS) is -$7.5, and its price-to-earnings (PE) ratio is -1.58, suggesting that the stock may be overvalued compared to its earnings. The average trading volume for the stock is 34.76 million, with 55.44 million shares traded during the last session.
News about small-cap stocks, price jumps, and potential short squeezes can impact investor sentiment, and these factors could contribute to the stock's current levels. These news items should be considered when assessing MARA's stock performance and potential future movement.
Price Predictions
Based on the given data, we predict the stock price for the next trading day to be within the range of $11.50 to $12.50. For the upcoming week, we expect the price to move within a range of $11.00 to $13.50.
In terms of target prices, the target high is $66, the target low is $12, and the target median is $24. Using the discounted cash flow (DCF) valuation, the stock is valued at $12.74.
Final Evaluation
Taking into consideration all the technical and fundamental aspects, we rate Marathon Digital Holdings, Inc. (MARA) as a Hold. While the stock is currently in an uptrend with positive momentum, its apparent overvaluation and potential for a short-term downtrend suggest that there may be limited opportunity for significant gains, at least in the short term.
