B. Riley Financial, Inc. (NASDAQ:RILY) shares are trading higher Wednesday after the company announced the results of an independent investigation showed the company and its executives had no involvement with, or knowledge of, any of the alleged misconduct concerning Brian Kahn or any of his affiliates.
The Details:
B. Riley engaged Winston & Strawn LLP as independent counsel to assist the Audit Committee in conducting an investigation of the historical relationship between the company and Brian Kahn, as well as certain related allegations asserted against the company by certain short sellers.
The company also noted the independent investigation was conducted subsequent to the company's February 22 disclosure of the internal review performed with the assistance of Sullivan & Cromwell LLP as outside counsel.
B. Riley shares are moving on heavy trading volume with more than fives times the stock's average volume already traded in Wednesday's session. According to data from Benzinga Pro, 67.17% of available shares are being sold short which can contribute to large price moves when combined with heavy trading volume.
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Is RILY A Good Stock To Buy?
An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like B. Riley Financial's page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.
These are known as capital allocation programs. B. Riley Financial does pay a dividend, which yields 10.68% per year as of the closing price on April 24. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.
Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on B. Riley Financial will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.
RILY Price Action: According to Benzinga Pro, B. Riley Financial shares are up 40.8% at $30.59 at the time of publication Wednesday.
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