Insider Activity Report: B. Riley Financial (RILY)

Bryant Riley, Co-CEO of B. Riley Financial (RILY), recently bought 6,199 shares. The buy increased his holdings by less than 1 percent, and came to a total cost just under $235,000.

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  • This follows up on several other purchases from the co-CEO, including 3 buys in May for 65,000 shares, valued at over $2.1 million. A company director also bought 10,000 shares back in March, paying nearly $300,000 to do so.

    Overall, insiders own 49.3 percent of the financial services provider.

    Shares are down about 15 percent over the past year, compared to a nearly 20 percent move higher in stocks. And while B. Riley lost money overall, revenues rose by 72 percent.

    Besides the sizeable insider ownership and ongoing buying, the company has been expanding its investment portfolio, with moves into branded spirits and aerospace and defense lending.

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  • Action to take: While the company isn’t currently profitable, it has a sizeable amount of cash on the balance sheet. That’s allowing it to pay a generous dividend that amounts to 10.3 percent right now. Shares have room for further upside, even if the dividend holds steady and doesn’t grow.

    For traders, shares have been in an uptrend in recent months, which looks likely to continue. The October $45 calls, last going for about $2.50, could see mid-to-high double-digit returns in the next four months.


    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 of the companies mentioned in this article.

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