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The Chairman & Co-CEO of B. Riley Financial, Inc. (NASDAQ:RILY), Bryant Riley, Just Bought 2.0% More Shares

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Simply Wall St
·3 min read
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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$4.6m worth of stock, at a price of US$46.00. 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 2.0%.

View our latest analysis for B. Riley Financial

B. Riley Financial Insider Transactions Over The Last Year

In fact, the recent purchase by Bryant Riley was the biggest purchase of B. Riley Financial shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$51.05 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for B. Riley Financial share holders is that insiders were buying at near the current price.

In the last twelve months insiders purchased 554.11k shares for US$17m. But insiders sold 11.46k shares worth US$347k. In the last twelve months there was more buying than selling by B. Riley Financial insiders. Their average price was about US$30.41. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
insider-trading-volume

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.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. B. Riley Financial insiders own 45% of the company, currently worth about US$579m based on the recent share price. 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's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about B. Riley Financial. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 4 warning signs for B. Riley Financial you should be aware of, and 2 of these can't be ignored.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.

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. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.