Insider Trading Report: B. Riley Financial (RILY)

Bryant Riley, Chairman and Co-CEO of B. Riley Financial (RILY), recently added 63,527 shares. The buy increased his holdings by 1 percent, and came to a total purchase price of just over $2.6 million.

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  • The buy comes about 10 days after a $2.2 million buy for just over 51,500 shares. And other company insiders, including both executives and directors, have been sizeable buyers in recent months. The last insider sale, from a major holder, occurred back in May.

    Overall, insiders at the financial services company own about 45.5 percent of shares.

    Shares are down nearly 50 percent over the past year, amid rising interest rates, and slowing financial service sector needs. That’s significantly more than the 17 percent drop in revenue for the company over the past year.

    Action to take: Interested investors may want to hold out until conditions improve for financial markets. Shares are likely to retest their recent lows just under $37 per share. And given the company’s current lack of earnings, the current dividend of 9.3 percent looks so high that it’s likely to be cut if earnings don’t improve quickly.

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  • For traders, the April $35 puts, last going for about $2.50, offer mid-to-high double-digit gains on a decline in shares over the next few months. Traders may want to take quick profits on a big down day for shares, given current market volatility.

     

    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.