Riot Platforms Insiders Sell US$1.4m Of Stock, Possibly Signalling Caution

The fact that multiple Riot Platforms, Inc. (NASDAQ:RIOT) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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Riot Platforms Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Hubert Marleau, sold US$584k worth of shares at a price of US$9.58 per share. That means that an insider was selling shares at slightly below the current price (US$10.51). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was 92% of Hubert Marleau's holding.

In total, Riot Platforms insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Riot Platforms

I will like Riot Platforms better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Riot Platforms

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Riot Platforms insiders own about US$249m worth of shares (which is 7.0% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Riot Platforms Insiders?

It doesn't really mean much that no insider has traded Riot Platforms shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Riot Platforms insiders selling. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 3 warning signs for Riot Platforms (of which 1 is a bit concerning!) you should know about.

Of course Riot Platforms may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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