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LOS ANGELES - B. Riley Financial, Inc. (NASDAQ: RILY), a diversified provider of financial services currently trading at $5.40 with a market capitalization of $163 million, announced the completion of its sale of Atlantic Coast Recycling, LLC for a cash transaction valued at approximately $70 million. According to InvestingPro analysis, the company currently shows signs of being undervalued based on its Fair Value assessment. The company anticipates a gain of roughly $30 million from this transaction, which is expected to be reflected in its first-quarter financial results. This transaction comes at a crucial time, as InvestingPro data shows the company maintaining a healthy current ratio of 4.17, indicating strong ability to meet short-term obligations.
This sale marks a profitable exit for B. Riley’s Principal Investments team, which had initially invested about $39 million in Atlantic Coast Recycling. The gain from this sale highlights the successful investment strategy employed by B. Riley Financial.
B. Riley Financial offers a wide array of services designed to address the varied strategic, operational, and capital requirements of its clients and partners. Its extensive portfolio includes investment banking, institutional brokerage, private wealth and investment management, financial consulting, and corporate restructuring, among others. Additionally, B. Riley Financial engages in opportunistic investments to benefit its shareholders and underwrites senior secured loans for asset-rich companies through certain affiliates.
The company’s press release statement also contained forward-looking statements subject to risks and uncertainties. These statements were based on management’s expectations as of today and could be affected by future events. B. Riley Financial has stated that it does not intend to update forward-looking statements unless legally required.
Investors and interested parties are reminded that this news is based on a press release statement and should consider the risks described in the company’s periodic filings with the SEC, including its 2023 Annual Report on Form 10-K and Quarterly Report for the period ending September 30, 2024.
The sale of Atlantic Coast Recycling is a significant financial move for B. Riley Financial, and the expected gain is a testament to the company’s strategic investment approach. The transaction is part of B. Riley’s broader financial operations, which span various services aimed at supporting businesses throughout their life cycles. Notable for investors, the company offers a substantial 31.32% dividend yield and has maintained dividend payments for 11 consecutive years. The stock has shown strong momentum recently, posting a 40.64% return in the past week. For deeper insights into B. Riley’s financial health and future prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 US stocks.
In other recent news, B. Riley Financial has completed the redemption of its 6.375% Senior Notes, which were scheduled to mature. This move aligns with the company’s financial management practices and obligations. Additionally, B. Riley secured a $160 million debt facility with Oaktree Capital Management, allowing it to retire an existing Nomura credit agreement and invest in the liquidation of JOANN fabric and crafts stores. The liquidation, managed by GA Group, involves approximately $2 billion in retail inventory. The new credit agreement is seen as providing B. Riley with increased financial flexibility.
Moreover, B. Riley Financial has paused dividends on its 6.875% Series A and 7.375% Series B preferred stocks. The company indicated that these dividends will accumulate until they are fully paid. This decision comes as B. Riley focuses on reducing its debt and recovering from investment losses. Notably, the company is expected to report its preliminary full-year 2024 results on March 3, 2024, which will offer further insights into its financial strategies.
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