Randall Paulson, a director at B. Riley Financial (RILY), recently added 20,000 shares. The buy increased his holdings by 8 percent, and came to a total cost of just over $744,000.
That adds to other insider buys over the past year, including the company Co-CEO, who last bought over 26,500 shares in late December. Overall, insiders have been substantial buyers over the past two years, with the last insider sale occurring back in May 2022.
Overall, company insiders own 46.5 percent of shares.
The financial services company has seen shares get cut in half over the last year, as slowing economic activity has led to a slowdown in earnings.
Revenues are off 17 percent in the past year, but earnings are down just 5 percent in the same period. That’s not bad considering the bigger slowdown in areas such as merger and acquisition activity.
Action to take: Investors may like shares for the long haul here. Besides the high insider ownership, shares yield about 11.6 percent at current prices, paying investors well to wait for a rebound.
For traders, shares have been in an uptrend in recent weeks. The April $40 calls are an at-the-money trade. Last going for about $3.75, they offer mid-double-digit returns on a further rally from current prices.
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.