Randall Paulson, a director at B. Riley Financial (RILY), recently added 10,000 shares. The buy increased his holdings by nearly 6 percent, and came to a total price of just under $485,000.
This adds to a number of recent insider buys, including multiple buys from the company Chairman and Co-CEO over the past few months. And going back three years, insiders have only been buyers at the company.
Overall, company insiders own 36.7 percent of shares.
The stock is down nearly 25 percent over the past year, as the company’s investment banking and financial services to high-net-worth individuals globally has taken a dive. The company missed on revenue in its most recent quarter, but shares are at 8 times earnings.
Action to take: High-net-worth individuals tend to come back strongly when financial markets recover. Chances are the stock can move higher from current prices as well. Thanks to the latest drop and a recently-raised dividend, the stock has a starting yield of 7.8 percent here.
For traders, shares are oversold and could set up for a strong rebound as soon as market fears dissipate. It’s probably a little early right now, but targeting the July $55 calls in the next few weeks could be a winner. That option last went for about $2.55, but could drop under $2 before shares trend higher.
Disclosure: The author of this article has a position in the company mentioned here, and may further trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.