Insider Buys Additional US$866k In B. Riley Financial Stock \

Those following along with B. Riley Financial, Inc. (NASDAQ:RILY) will no doubt be intrigued by the recent purchase of shares by Bryant Riley, Co-Founder of the company, who spent a stonking US$866k on stock at an average price of US$34.66. 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 0.4%.

See our latest analysis for B. Riley Financial

The Last 12 Months Of Insider Transactions At B. Riley Financial

In the last twelve months, the biggest single sale by an insider was when the insider, Daniel Asher, sold US$36m worth of shares at a price of US$57.83 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$33.33. So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Daniel Asher. Notably Daniel Asher was also the biggest buyer, having purchased US$65m worth of shares.

In the last twelve months insiders purchased 1.19m shares for US$65m. On the other hand they divested 629.99k shares, for US$36m. In total, B. Riley Financial insiders bought more than they sold over the last year. The average buy price was around US$54.58. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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.

Insider Ownership Of B. Riley Financial

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 46% of the company, currently worth about US$435m 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 Do The B. Riley Financial Insider Transactions Indicate?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest B. Riley Financial insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing B. Riley Financial. Be aware that B. Riley Financial is showing 3 warning signs in our investment analysis, and 2 of those are a bit concerning...

But note: B. Riley Financial may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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