Unsafe At Current Price? – Marathon Patent Group Inc. (MARA), Marinus Pharmaceuticals Inc. (MRNS)

Marathon Patent Group Inc. (NASDAQ: MARA) shares are 181.37% up in the year-to-date (YTD) period and have moved -3.12% or -$0.08 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +604.15% lower. Comparatively, the stock is -52.76% down YTD and 202.44% over the trailing 3-month period. If we look at the shorter duration, its week performance is 7.36% and 22.17% over the month.

Analyst Recommendations

On June 12, 2015, ROTH Capital recommended the MARA stock is a Buy, while earlier, Northland Capital had Reiterated the stock as a Outperform on August 18, 2015. 0 of the 1 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 1 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $2.48. The forecasts give the Marathon Patent Group Inc. stock a price target range of $64.00 on the higher side while at least one analyst think the stock could plunge to a low of $64.00. The two limits represent an upside potential of 96.13% or 96.13%.

Earnings Forecast

Analysts estimate the earnings to increase 28.60% in the current quarter to $0, up from the -$6.72 reported in the same quarter a year ago. Wall Street estimates earnings per share to be at an average of $0 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 1 over the last 12 months, while SEC filings reveal that there have been 0 insider sales over the same period. Insiders have purchases 25,000 shares while those sold by company executives and officers stand at 0. The last 3 months have seen insiders trade a total of 0 and 0 in purchases and sales respectively.

The Chief Executive Officer had earlier bought another 25,000 MARA shares valued at $24735.0 on Nov 22. The shares were bought at $0.99 per share.

Marinus Pharmaceuticals Inc. (NASDAQ:MRNS), on the other hand, is trading around $1.94 with a market cap of $213.01M and analyst research firms have a negative stance on its shares. Some analysts are even forecasting -$0.75 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Marinus Pharmaceuticals Inc. (MRNS) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

MRNS’s operating expenses over the recent quarter were at -$15.68 million. This represented a 198.7% of the company’s total revenues which amounted $15.88 million. With this in place, we can see that the company’s diluted EPS declined -$0.16 on the year-over-year period, shrinking to -$0.24 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Sep 2020), the total assets figure advanced to $113.44 million from $84.56 million over the previous quarter. Short term investments amounted to $6.97 million while total current assets were at $109.03 million. The cash flow from operating activities totaled -$30.05 million, significantly lower than the -$20.38 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$30.05 million.

Insider activity

Insiders have transacted a total of 0 times at Marinus Pharmaceuticals Inc. over the last 6 months, with insider purchases undertaken 0 times and accounting for 0 shares. Insider sales totaled 0 shares over the same period, with these deals completed in 0 transactions. Looking at these numbers, we realize that net purchases over that period are 0.0 shares. Insiders now hold a total of 763.72k shares after the latest sales, with 0.00% net shares purchased.

Major holders

Insiders own 0.63% of the company shares, while shares held by institutions stand at 77.80% with a share float percentage of 82.92M. Investors are also buoyed by the number of investors in a company, with Marinus Pharmaceuticals Inc. having a total of 112 institutions that hold shares in the company. The top two institutional holders are Avoro Capital Advisors LLC with over 11.96 million shares worth more than $30.38 million. As of Jun 29, 2020, Avoro Capital Advisors LLC held 9.79% of shares outstanding.

The other major institutional holder is Lion Point Capital, LP, with the investment firm holding over 10.87 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $27.62 million and represent 8.90% of shares outstanding.