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Is RILY Stock a Solid Long-Term Investment?


B. Riley Financial is an emerging giant in the financial industry. Some investors eye the stock cautiously as it is a consistent producer with vast networks of financial services divisions, numerous acquisitions, and a solid financial standing. It's a well-respected financial company that has been a topic of discussion in business circles for decades. The question remains among investors, is stock in the company a solid long-term investment? Our research indicates it's among the most solid investment options for those seeking to build a diverse retirement portfolio, but any stock investment comes with the risk of loss. We looked into the company profile, its performance history, and the opinions of analysts and forecasters to get a more comprehensive picture of the stock with risk factors and its potential for generating long-term gains for investors.

What is B. Riley Financial?

Bloomberg describes B. Riley Financial Inc as a financial services firm offering diversified services for its clients, including, but not limited to investment banking, wealth services management, corporate finance research, trading, sales, advisement, valuation, and other services. B.Riley Financial serves public and private companies and individuals with high net worth across the globe. The firm became incorporated in August 2014, with its roots going back five decades to 1973. The company employs 1,406 workers. Crunchbase further explains that B. Riley Financial expanded its operations to include multiple divisions or arms within the financial services industry to include investment product advisements for investors of high net worth through the B.Riley Wealth Management practice and various subsidiaries. B.Riley Financial was founded in 1973, nearly fifty years ago, with newer divisions added through the years. It's registered on the New York Stock Exchange under the ticker symbol: RILY as a publicly-traded company.

B. Riley Investments

B. Riley Financial has made sixteen investments with ten lead investments and eight exits. Some of B. Riley's investments include Exela Technologies, Greenidge, Cadiz, Salted, Kitopi, Lifeboxer, BloomNation, Eos Energy Storage, IQvestment Holdings, the Arena Group, and several others. It has one diversity investment in SRAX in March of 2020. B. Riley has exited from Greenidge, Exela Technologies, the Arena Group, Eos Energy Storage, SRAX, Sonim Technologies, Cadiz, and Bebe. It's invested in everything from women's clothing to energy production companies.

  • B. Riley strategic acquisitions
  • B. Riley Financial has acquired eight companies in its expansion of services and territorial reach throughout the United States. In January 202, it acquired FocalPoint Partners. FocalPoint Partners is an investment bank. It provides acquisition and merger services to clients in Southern California.
  • BRF purchased 272 Capital, a Texas-based investment advisor. It provides risk-adjusted returns through long and short equity strategies.
  • GlassRatner Advisory & Capital Group of Atlanta, Georgia is a financial advisory firm.
  • Magic Jack Vocal Tec is a Herzliya, Tel Aviv, Israel-based startup. It provides VoIP solutions for communications distributors.
  • Wunderlich Securities is a brokerage firm for equity trading services and sales in Memphis, Tennessee.

United Online Inc is a publicly-traded company providing Internet consumer products and services based in Woodland Hills, California. FBR & Co is a full-service investment banking firm offering trading, research, asset management, and institutional sales from its headquarters in Arlington, Virginia. We see a pattern of acquisitions that provide BRF with more territory, expanded financial services offerings, and diversification into industries other than financial services. The acquisitions function as wholly-owned subsidiaries of B.Riley Financial.

Expert opinions on RILY stock

Seeking Alpha posed an assessment in March of 2022. They pointed out that RILY has a consistent history of growing revenues, dividends, and earnings, but it is under-followed. It's stable with yields of six percent, continues to add stable acquisitions to its growing list of subsidiaries, and has an impressive track record for allocating capital. They're investors who know their business with a proven record of success. Shares climbed from $58 to $65 at last glance with a stronger case for investment as R. Riley continues to expand its reach and capabilities. It's viewed as a solid investment for returning annual dividends to shareholders.

Is B. Riley Financial a strong investment option?

The Motley Fool is a trusted resource for assessing the risks of selected stocks. Their analysts point out that B.Riley Finacial has made a habit of acquiring businesses that are complementary to its overall goals. It produces dividends that exceed the six percent yield in quarterly payments, going the extra mile with multiple occurrences of special dividends. The plusses associated with B.Riley Stock include its diversified portfolio that compensates for dips in specific industries. It owns an interest in companies across multiple industries with well-thought strategies to purchase well-known companies on solid ground. The Fool also ventures that more shares are being bought by insiders. twenty-seven percent of the firm is insider-owned. The stocks are undervalued thanks to the strong insider buying. Shareholder interests are a focal point of B.Riley Financial making the stock more attractive for long-term investment. Company values look after the interests of investors. They even speculate that B. Riley Financial may be another Berkshire Hathaway in the making. While they see RILY stock as a buy right now, offering a solid long-term investment option, they're also careful to point out that there are other stocks that they feel are better buys. They conclude that B. Riley is a high-yielding stock worth watching and considering, but not before comparing it with other options and discussing your options with our financial advisor. There are plenty of reasons to invest in B. Riley stock for a long-term portfolio, but there are others that could be better choices.

Should you buy and when is the best time to buy RILY Stock?

RILY is recommended as a strong buy currently. The question of whether you should buy or let it ride is a personal decision. If you're watching the stock and are positive about its potential for long-term ROI, the next logical question is when to buy? Nasdaq offers additional information and tips that may help you to decide. RILY's ex-dividend date is the business day before the record date for eligible shareholders. Trades of stock that are settled on the record date or before making the investor dividend payout eligible. It's essential to know that the ex-dividend date is March 8th. Anyone buying stock shares on or before the date is eligible for the dividend of $4 per share. Dividends and earnings are growing at a rate of 68 percent annually over the last five years. The rapid growth is good, but B. Riley pays out a fraction of the profits with the past year at sixteen percent., which is not as good. Analysts with Nasdaq are not inclined to recommend it as the best stock option because of its frugal distribution of profits to shareholders.

Comparing past performance

It's wise to step back in time a year or so to view a snapshot of expert opinions to compare them with present wisdom. In March of 2020, B. Riley hit a low of $12.85 per share. named RILY as a stock to catch as the stock made an impressive recovery with stock prices increasing by 89 percent in 2021. They viewed it as a strong stock that was on the rise amidst a resurgence after taking a dip with solid volume and the likelihood of establishing a new entry point. The overarching performance was excellent historically with stock market performance and earnings on par. When we compare insider investing with last year, it's grown by two percent. Analysts liked the strength of B. Riley's business model and its frequent acquisitions of complementary businesses for diversity. They added the service of bankruptcy restructuring for clients, which is one more reason to trust in its forward trajectory.

What are the risks of investing in RILY stock?

All investments come with risks and RILY stock is no exception. We turned to the experts at Simply Wall for a rundown of the risks with commonly asked questions to help investors assess the level of associated risk. They point out that RILY failed at providing high-quality earnings. Other failures include the sustainability of its dividend at an average of 5.9 percent which is not covered well enough by earnings. they also found that shareholders have been diluted within the past twelve months. We've addressed the negative aspects of RILY, now on to the positives. Briley is profitable, earnings have grown over the past five years, the financial position is solid with low dept, and the share price is stable. Additionally, profit margins improved over the past year and ample financial data is available to substantiate positive claims about its stability. B. Riley Financial has encountered no recent events of concern, nor have insiders engaged in significant selling which could signal trouble had they made a frenzied selling run. The market capitalization is $2 billion and shareholders' equity is positive.

The takeaway from expert opinions

We've looked at the pros and cons of buying RILY stock and it seems that the company is a solid option for long-term investments, but the payouts for dividends are not as strong as some other companies. The likelihood of the stable yet low payments continuing is high if you want to invest with a lower risk of loss for the marginal gains. There's not much chance of B. Riley folding or going into decline, although nothing is a certainty in the present times. B. Riley pays regular dividends and occasionally offers special dividend payouts while some other companies do not. It's not the worst option for long-term investment.

Our conclusion

B. Riley Financial is a successful financial firm with a diversification of services and investments. The company continues to grow and expand its outreach into national and international territories with additions to its repertoire of services and products in the financial and other industries. It leaves an impression of stability as a nearly fifty-year-old institution with a strong track record of success. It's in a phase of growth and prosperity as a profitable company with low debt. On the pros and cons analysis, there are more positive aspects in favor of B. Riley Financial than negative. Revenues are on the rise, and RILY pays out annual dividends, and occasionally, pays special dividends based on the profit margins for the year. It has no negative events in its long and storied history. We see no evidence of decisions made with poor judgment in the operations and growth strategies. Overall, it's a solid company that offers a lower risk of loss compared with some other stocks that offer higher dividend payouts. As most experts in stock trading point out, RILY pays out dividends that are lower than the profit margins brought in, suggesting that shareholder value could be higher. The company has diluted shareholders, but it's not a deal-breaker that would make RILY a poor investment option. None of the analysts suggest that an investment in RILY would be a mistake. They do point out that there are better options for achieving higher yields on dividends. B. Riley Financial is not likely to increase the dividend yield as it continues to bring in higher profitability figures as it's believed they're reinvesting in the growth and expansion of the business. It's a multi-faceted corporation with further goals to continue its growth and expansion. It's worth noting that it's taken a responsible and stable approach to growth through reinvestment, lower dividend payouts, and preservation of its balance sheet by keeping its debt balance low. RILY is a stock worth consideration for inclusion in a long-term investment portfolio, but we recommend making a few comparisons first.

Allen Lee

Written by Allen Lee

Allen Lee is a Toronto-based freelance writer who studied business in school but has since turned to other pursuits. He spends more time than is perhaps wise with his eyes fixed on a screen either reading history books, keeping up with international news, or playing the latest releases on the Steam platform, which serve as the subject matter for much of his writing output. Currently, Lee is practicing the smidgen of Chinese that he picked up while visiting the Chinese mainland in hopes of someday being able to read certain historical texts in their original language.

Read more posts by Allen Lee

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