During the recent trading sessions stock of Marathon Patent Group, Inc. (NASDAQ:MARA) was gathering the crowd in the stock market. Many analysts use price trends and patterns to predict future performance, and we can glean some important insights about MARA by examining the chart.
How has the stock performed recently?
Marathon Patent Group, Inc. (NASDAQ:MARA) in the last month has increased +232.14%. Shares are now up over the past year, outperforming the broad market by -100% and outperformed a peer group of similar companies by 1048%. After the latest session, which saw the stock close at a price of $4.65, MARA sits below its 52-week high. Marathon Patent Group, Inc. (NASDAQ:MARA) has been trading in a bullish manner, based on the relative positions of the stock’s 20 and 200 day moving averages.
Of course, these surface-level price movements don’t tell us much about the direction that MARA may be headed in the future. To forecast a stock’s future performance, analysts use momentum indicators, which take into account the size and speed of these price movements. As momentum begins to slow, it may be a sign that a recent trend is about to reverse. Two such indicators are the RSI (Relative Strength Index) and the Stochastic %k Oscillator, which fluctuate on a scale of 0 to 100. A reading above 70 indicates that a stock is overvalued, and a reading below 30 implies that it is undervalued. The 20-day RSI for MARA is 62.13%, which suggests that the stock is not particularly expensive or cheap, and not predisposed to a reactive price movement based on this measure. The 20-day Stochastic %k measure, which sits at 40.91%, tells a similar story, and suggests that MARA currently trades in neutral territory.
What do the trading volumes reveal?
Volume patterns can also be useful for predicting future performance. When trading activity is abnormally high, it’s often a sign that the market feels particularly strong in one way or another about the future direction of a stock. Marathon Patent Group, Inc. (MARA) average trading volume of 9,813,180 during the past month is 585.78% above its average volume over the past year, indicating that investors have been more active than usual in the stock in recent times.
What do the analysts think?
MARA is currently overvalued by 16.25% relative to the average 1-year price target of $4.00 taken from a group of Wall Street Analysts. The average investment recommendation on a scale of 1 to 5 (1 being a strong buy, 3 a hold, and 5 a sell) is 2.00, which implies that analysts are generally neutral in their outlook for MARA over the next year.
How risky is the stock?
When predicting the future performance for a stock, it’s also important to take into account risk. To do this, analysts often use a stock’s beta, which measures the stock’s volatility relative to the overall market.
Marathon Patent Group, Inc. (NASDAQ:MARA) has a beta of 1.25, compared to a beta of 1 for the market, which implies that the stock’s price movements are more extreme than the market as a whole. MARA therefore has a above average level of market risk. During the past couple of weeks, MARA average daily volatility was 502.52%, which is -269.21 percentage points higher than the average volatility over the past 100 days.
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