B. Riley Financial (RILY) Soars 3.97% on Strategic Moves

B. Riley Financial (RILY) shares surged 3.97% today, marking an eighth consecutive day of gains and a remarkable 51.88% increase over the past eight days. The stock price reached its highest level since March 2025, with an intraday gain of 9.35%.

The strategy of buying RILY shares after they reached a recent high and holding for 1 week yielded moderate returns but underperformed the market. The 5-year backtest shows an average annual return of 3.5% for this strategy, compared to a 6.2% annual return for the SPY ETF over the same period. While the strategy provided a positive return, it lagged behind the broader market, highlighting the importance of considering broader market conditions and long-term investment horizons when making investment decisions.

B. Riley Financial has recently undertaken several strategic initiatives to bolster its financial health. In July 2025, the company revised its credit facility with Oaktree Capital Management, a move aimed at reducing leverage and improving liquidity. This amendment includes new investment baskets, providing greater flexibility in capital allocation for balance sheet transactions and investments. Additionally, the company has completed a private bond exchange, reducing its debt by approximately $15 million, and has sold its advisory services business, GlassRatner, for $117.8 million. These actions collectively reduce total borrowings significantly and demonstrate a strategic focus on its core financial services, such as middle-market investment banking and wealth management. While challenges remain, including pending regulatory filings, these strategic moves position B. Riley Financial for potential recovery and growth in the financial services sector.