On July 2, 2020, B. Riley Financial Inc (NASDAQ: RILY) announced that it has entered an agreement to buy 900,000 shares at $22.00 and is part of a negotiated transaction from a private seller. The amount represents 3.5% of outstanding shares, will be completed in two blocks of 450,000 and is part of the company’s existing share repurchase program.
The company is an investment bank that offers wealth management, corporate finance, auction and liquidation, and valuation and appraisal of private equity firms and financial institutions. The company also engages in acquiring businesses for investment returns.
The share price of the company broke its $20 resistance in early June and has recently retested that area on June 26. Over the past week, the price has begun to rally. Over the past two months, the volume has indicated significant accumulation as the on-balance volume has continued to rise along with the price.
In the month of June, RILY was the fourth-most bought stock by a CEO at 60,000 shares over two transactions for a total value of $1.29 million. Bryant Riley, chairman and CEO, is a 10% owner in the company and began purchasing shares again on March 11 and added a number of buys throughout the month. He also had a small purchase in May. The largest of his purchases have come in June with one purchase for 40,000 shares and another for 20,000 shares on June 3 and June 10, respectively. This means that he was adding shares as the price was breaking out in June.
Here are links to the last two insider trading reports.
Action to Take: RILY is a long opportunity with a target of $25.