Douglas Mouton, a director at Riot Platforms (RIOT), recently bought 8,384 shares. The buy increased his stake by 70%, and came to a total cost of $64,892.
This marks the first insider buy at Riot over the past two years. There have been over a dozen insider sales, including a $9 million sale from the Chairman of the Board in June 2023 at a far higher price. All sales were market sales, not coming from the exercise of stock options.
Overall, Riot insiders own 6.9% of shares.
The bitcoin and cryptocurrency mining platform is down 32% over the past year, following the price of cryptocurrencies lower over the past few months.
Operationally, Riot has been a strong performer, with revenues up a massive 80% and earnings surging by a hefty 246% in the past year. Riot also sports a solid 29% profit margin, and shares trade at a slight discount to the market at 20 times forward earnings.
Action to take: Speculative investors may like shares here, as cryptocurrency prices are likely to see another leg higher in 2025, provided the sector follow prior four-year cycles related to bitcoin’s halving.
For traders, the September $10 calls, while aggressive, last traded for about $1.20. the calls could see high double-digit returns or better on a surge higher in shares, which could also perform well on the next leg higher for bitcoin prices.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.