Bryant Riley Is The Chairman & Co-CEO of B. Riley Financial, Inc. (NASDAQ:RILY) And They Just Picked Up 4.4% More Shares
Those following along with B. Riley Financial, Inc. (NASDAQ:RILY) will no doubt be intrigued by the recent purchase of shares by Bryant Riley, Chairman & Co-CEO of the company, who spent a stonking US$11m on stock at an average 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%.
View our latest analysis for B. Riley Financial
B. Riley Financial Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Daniel Asher for US$32m worth of shares, at about US$80.65 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$51.02). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. We note that Daniel Asher was both the biggest buyer and the biggest seller.
Happily, we note that in the last year insiders paid US$74m for 1.58m shares. But they sold 372.73k shares for US$30m. In total, B. Riley Financial insiders bought more than they sold over the last year. The average buy price was around 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. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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
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$590m worth of shares (which is 41% 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.
What Might The Insider Transactions At B. Riley Financial Tell Us?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about B. Riley Financial. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing B. Riley Financial. For example, B. Riley Financial has 4 warning signs (and 1 which is significant) we think you should know about.
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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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.
