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$679k worth of stock, at a price of US$27.15. 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 0.5%.
B. Riley Financial Insider Transactions Over The Last Year
In fact, the recent purchase by Chairman & Co-CEO Bryant Riley was not their only acquisition of B. Riley Financial shares this year. Earlier in the year, they paid US$20.81 per share in a US$832k purchase. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$27.40. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months B. Riley Financial insiders were buying shares, but not selling. 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!
B. Riley Financial is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does B. Riley Financial Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. B. Riley Financial insiders own about US$250m worth of shares (which is 36% 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. 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. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing B. Riley Financial. Case in point: We've spotted 4 warning signs for B. Riley Financial you should be aware of, and 2 of them shouldn't be ignored.
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.
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.
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