Insider Buying: The B. Riley Financial, Inc. (NASDAQ:RILY) Chairman & Co-CEO Just Bought 4.4% More Shares

By
Simply Wall St
Published
May 08, 2022
NasdaqGM:RILY
Source: Shutterstock

B. Riley Financial, Inc. (NASDAQ:RILY) shareholders (or potential shareholders) will be happy to see that the Chairman & Co-CEO, Bryant Riley, recently bought a whopping US$11m worth of stock, at a price of US$47.23. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 4.4%.

See our latest analysis for B. Riley Financial

The Last 12 Months Of Insider Transactions At B. Riley Financial

The insider Daniel Asher made the biggest insider purchase in the last 12 months. That single transaction was for US$32m worth of shares at a price of US$80.65 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$51.02). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that Daniel Asher was both the biggest buyer and the biggest seller.

In the last twelve months insiders purchased 1.58m shares for US$74m. But insiders sold 372.73k shares worth US$30m. Overall, B. Riley Financial insiders were net buyers during the last year. Their average price was about US$46.43. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqGM:RILY Insider Trading Volume May 8th 2022

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of B. Riley Financial

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. B. Riley Financial insiders own about US$590m worth of shares (which is 41% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The B. Riley Financial Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about B. Riley Financial. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing B. Riley Financial. To help with this, we've discovered 4 warning signs (1 is potentially serious!) that you ought to be aware of before buying any shares in B. Riley Financial.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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