Short Interest Matters for Riot Blockchain, Inc. (RIOT) Investors

How do you judge Wall Street’s opinion of RIOT stock? You could look at price, sure. But that doesn’t tell the whole story. Short sellers are getting bullish about Riot Blockchain, Inc. (NASDAQ:RIOT) during the most recent two-week period. Looking at the sentiment indicator for the RIOT stock we see that the short-interest ratio is at 8.019248 while the average analyst recommendations at 0 suggests selling these shares. Between January 15 and January 31, the total number of shorted shares amounted to 3.14 million shares. That was 2.96% less than the total of 3.23 million shares in the space of prior two weeks, which means more traders or funds betting that the stock will go up. Average daily volume for Riot Blockchain, Inc. at the January 31st settlement jumped to 391,050, as compared to 379,743 at the January 15th report. That brought days to cover 5.76% down from the 8.509513 days to cover recorded at the prior short interest data release.

Riot Blockchain, Inc. (RIOT) will probably climb 76.99 percent when compared to the closing price of the stock of $2.26 on Thursday, February 14, over the next 12 months, according to price target estimates compiled by finviz.

The stock is currently hovering around the first support level of $2.09. Below this, the next support is placed in the zone of $1.93. Till the time, the RIOT stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 63.42 on daily chart, which may remain a cause for concern. If the price breaks below $1.93 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $2.41 mark may result into a pull-back move towards $2.57 level.

On 14th of February, Riot Blockchain, Inc. (NASDAQ:RIOT) shares ended higher after a volatile session. The shares accumulated 0.15 points or 7.11 percent at $2.26 with a light trade volume of 1.289 million shares. After opening the session at $2.11, the shares went as high as $2.4 and as low as $2.0801, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $26.42 million and now has 11.69 million shares outstanding. Riot Blockchain, Inc. (RIOT) stock has gained 39.51 percent of market value in 21 trading days.

RIOT stock has a trailing 3-year beta of 3.15, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$2.81 a share in the trailing twelve months. The stock’s value has surged 49.67 percent year to date (YTD) against a decline of -85.93 percent in 12 month’s time. The company’s shares still trade -87.72 percent away from its 1-year high of $18.40 and 75.18 percent up from 52-week low of $1.29. The average consensus rating on the company is 0, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Riot Blockchain, Inc. (RIOT) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry RIOT operates in has an average P/E of 69.44. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 4.13 on the Price-to-Sales ratio. Compare this with the industry average P/S of 49.51. 37.7 percent is the gross profit margin for Riot Blockchain, Inc. and operating margin sits at 0 percent. Along with this, the net profit margin is 0 percent.

Let’s take a look at some insider activity at Riot Blockchain, Inc. (NASDAQ:RIOT) and see the pattern. The earliest insider trade took place on 12/29/2017. O’Rourke John R. Iii parted with a total of 30.38 thousand shares of company at average share price of $28.61. The total for the sales was set at $869.26 thousand. After this transaction, the President, CEO, Chairman account balance stood at 52 thousand shares. The stock lost -92.1 percent since that insider sale. On 01/04/2017, Honig Barry C, 10% Owner, purchased 4 thousand shares at a price per share of $4.22. This added 16.88 thousand shares to the insider’s fortune and the stock saw a -46.45 percent retreat in value since the news became public. This transaction left 443.59 thousand shares in the 10% Owner account.

On 12/01/2016, 10% Owner Honig Barry C performed a purchase transaction worth $150.27 thousand. This purchase at $5.04 each has added 29.82 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -55.16 percent decrease since the transaction was reported. The insider now is left with 500 thousand shares remaining in the account. Honig Barry C, who performs the 10% Owner job, bought 63.43 thousand shares for $159.83 thousand. The acquisition occurred on 10/18/2016 was priced at $2.52 per share. The share price plunged -10.32 percent since the reporting date. Honig Barry C now left with a stake of 452.59 thousand RIOT stock worth $1.02 million after the insider buying.