Even if it's not a huge purchase, we think it was good to see that Kevin DeNuccio, the Independent Director of Marathon Digital Holdings, Inc. (NASDAQ:MARA) recently shelled out US$69k to buy stock, at US$13.72 per share. However, it only increased their shares held by 5.0%, and it wasn't a huge purchase by absolute value, either.
Marathon Digital Holdings Insider Transactions Over The Last Year
Notably, that recent purchase by Independent Director Kevin DeNuccio was not the only time they bought Marathon Digital Holdings shares this year. They previously made an even bigger purchase of US$149k worth of shares at a price of US$9.63 per share. We do like to see buying, but this purchase was made at well below the current price of US$11.35. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Kevin DeNuccio bought a total of 20.42k shares over the year at an average price of US$10.63. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Marathon Digital Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Marathon Digital Holdings insiders own about US$70m worth of shares. That equates to 5.3% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Marathon Digital Holdings Tell Us?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Marathon Digital Holdings insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 3 warning signs for Marathon Digital Holdings (1 is a bit unpleasant!) that we believe deserve your full attention.
Of course Marathon Digital Holdings 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, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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