Riot platforms director sells shares worth over $137k

Riot Platforms, Inc. (NASDAQ:RIOT) director Hubert Marleau has recently sold a total of 17,861 shares of the company's common stock, generating over $137,529 in proceeds. The transactions took place on August 14, with the shares sold at prices ranging from $7.70 to $7.705 each, according to a regulatory filing submitted on August 15.

The reported sales were executed in multiple transactions, and the price of $7.70 represents the weighted average sale price for these shares. Following the sale, Marleau's remaining ownership in Riot Platforms stands at 66,000 shares of common stock.

Riot Platforms, previously known as Riot Blockchain (NASDAQ:RIOT), Inc., is a company that has undergone several name changes, having previously been known as Bioptix, Inc. and Venaxis , Inc. The company is incorporated in Nevada and operates within the finance services sector, with a focus on crypto assets.

Investors often monitor insider transactions as they can provide insights into a company's financial health and future prospects. The sale by a director like Marleau might attract attention from the market, as it reflects the actions of an individual with intimate knowledge of the company.

The legal representative for Marleau, Alexander K. Travis, signed the SEC filing as attorney-in-fact, confirming the accuracy and completeness of the reported transactions. The filing also included an undertaking to provide full information regarding the specific number of shares sold at each price point upon request.

Riot Platforms' business address is listed in Castle Rock, Colorado, and the company can be reached at its business phone number for further inquiries or details regarding its operations.

In other recent news, Riot Platforms, a key player in Bitcoin mining, has been making strategic moves. The company has increased its stake in competitor Bitfarms to 18.9%, following the acquisition of an additional 1 million common shares. This development comes in the wake of Bitfarms' co-founder and chair, Nicolas Bonta, stepping down amidst ongoing tensions between the two companies.

Riot Platforms has also reported a 45% increase in Bitcoin production in July, and announced the acquisition of Block Mining in Kentucky, adding 1 EH/s to its self-mining capacity. This expansion is part of the company's aim to reach 5 EH/s in hash rate capacity in Kentucky by year-end. The company's total deployed hash rate stood at 23.3 EH/s, showing a significant 118% rise from the same period last year.

In a separate development, Riot Platforms has removed its data center hosting segment from reportable business segments, following the termination of all contracts with the company's data center hosting and colocation customers. This change is part of Riot Platforms' ongoing efforts to focus on its core business areas of Bitcoin Mining and Engineering.

In terms of financial performance, Riot Platforms reported revenues of $70 million, surpassing the projected $65 million, but adjusted EBITDA was significantly lower than the anticipated $16 million. Analyst firms Needham and Stifel Canada have maintained Buy ratings on Riot Platforms, with Needham increasing the price target to $14 from $13 and Stifel Canada setting a price target at $18.

InvestingPro Insights

Riot Platforms, Inc. (NASDAQ:RIOT) has been navigating a volatile market landscape, which is reflected in its recent stock performance and financial metrics. According to InvestingPro data, Riot holds a market capitalization of approximately $2.33 billion, with a Price/Earnings (P/E) ratio of 19.4. This valuation comes at a time when the company has experienced a 9.21% revenue growth over the last twelve months as of Q2 2024, despite a quarterly revenue decline of 8.76% in Q2 2024.

Two notable InvestingPro Tips for RIOT include the company's ability to hold more cash than debt on its balance sheet, which can provide financial flexibility in uncertain times, and the expectation from analysts that the company's net income is projected to grow this year. These insights may be particularly relevant for investors considering the recent insider sale by director Hubert Marleau, as they provide a broader context of the company's financial standing and future outlook.

It's also worth noting that while the gross profit margin stands at 18.58%, the company has been facing challenges with an operating income margin of -30.98%. Despite these challenges, the company is trading at a low P/E ratio relative to near-term earnings growth, which could be a point of interest for value investors. For those looking to delve deeper into the company's financials and stock performance, InvestingPro offers additional tips, with a total of 16 more available at https://www.investing.com/pro/RIOT, which could further inform investment decisions.

As for the current market sentiment, RIOT's stock has seen significant volatility, with a 1-month price total return of -39.53% as of the latest data, and the stock trading near its 52-week low. These fluctuations underscore the importance of keeping abreast of real-time metrics and expert analysis, which can be accessed through InvestingPro's comprehensive platform.

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