B Riley (NASDAQ: RILY) – analysis and stock recommendation

B Riley (NASDAQ: RILY) is a full financial services firm based in Los Angeles. The company through several subsidiaries helps companies & high net worth individuals, invest, raise money, acquire and sell companies.

I would buy between $27 and $29, hold for 3-6 months on EPS growth long term.

RILY B. Riley Financial, Inc. daily Stock Chart

There are five operating segments: (i) Capital Markets, (ii) Auction and Liquidation, (iii) Valuation and Appraisal, (iv) Principal Investments – United Online and magicJack, and (v) Brands.

Capital Markets segment provides a full array of investment banking, corporate finance, consulting, financial advisory, research, securities lending, wealth management and sales and trading services to corporate, institutional and high net worth clients. 

Auction and Liquidation segment utilizes our significant industry experience, a scalable network of independent contractors and industry-specific advisors to tailor our services to the specific needs of a multitude of clients, logistical challenges and distressed circumstances. 

Valuation and Appraisal segment provides Valuation and Appraisal services to financial institutions, lenders, private equity firms and other providers of capital. 

Principal Investments – United Online and magicJack segment consists of businesses which have been acquired primarily for attractive investment return characteristics.

Brands segment consists of our brand investment portfolio that is focused on generating revenue through the licensing of trademarks.

The stock went public on Oct 2019.

They focus principally on five target industries in the investment banking operations: consumer goods, consumer services, defense, industrials and technology.

Fundamentals: Key metrics

Market Cap: $876Million

PE:19

EPS Growth 2019: 41%

Institutional Ownership: 48%

Sales growth Q/Q: 25%

EPS growth Q/Q: 43.9%

52 Week L $12.94 & 52 Week Hi $31.00

Current price: $30.0

Technical Key Metrics:

Support: $27, Resistance: $31

Moving Averages: EMA (50) – $19.91, and EMA (20) – $23.51