Potential B. Riley Financial, Inc. (NASDAQ:RILY) shareholders may wish to note that the Co-CEO & Director, Thomas Kelleher, recently bought US$204k worth of stock, paying US$20.43 for each share. Although the purchase only increased their holding by 1.8%, it is still a solid purchase in our view.
B. Riley Financial Insider Transactions Over The Last Year
Chairman & Co-CEO Bryant Riley made the biggest insider purchase in the last 12 months. That single transaction was for US$774k worth of shares at a price of US$19.28 each. That means that even when the share price was higher than US$17.65 (the recent price), an insider wanted to purchase shares. 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.
In the last twelve months insiders purchased 100.23k shares for US$1.9m. On the other hand they divested 10000 shares, for US$195k. Overall, B. Riley Financial insiders were net buyers last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does B. Riley Financial Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. B. Riley Financial insiders own about US$160m worth of shares (which is 35% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About B. Riley Financial Insiders?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about B. Riley Financial. That’s what I like to see! While we like knowing what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 3 warning signs for B. Riley Financial (1 doesn’t sit too well with us!) and we strongly recommend you look at them before investing.
Of course B. Riley Financial 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.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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