Why Is B. Riley Financial Stock Jumping Today?
Portfolio Pulse from Nabaparna Bhattacharya
B. Riley Financial (NASDAQ:RILY) shares surged after co-founder Bryant R. Riley proposed to acquire all shares he doesn't own for $7 per share, a 40% premium over the previous closing price. Riley, the largest stockholder, plans to finance the transaction with debt and possibly third-party equity. The company recently suspended its dividend, reported its largest quarterly loss, and confirmed an SEC investigation.
August 16, 2024 | 5:19 pm
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B. Riley Financial shares surged 21.9% after co-founder Bryant R. Riley proposed to acquire all shares he doesn't own for $7 per share, a 40% premium over the previous closing price. The proposal follows the company's recent suspension of its dividend, its largest quarterly loss, and an SEC investigation.
The proposal to acquire all shares at a significant premium is a strong positive signal for the stock, leading to a 21.9% increase in share price. The market views this as a vote of confidence from the largest shareholder, despite recent negative news such as dividend suspension, quarterly loss, and SEC investigation.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100