Here’s Why B. Riley Financial (RILY) Declined in Q4

Miller Value Partners, an investment management company, released its “Income Strategy” fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy returned 11.68% net of fees compared to a 3.98% return for the ICE BofA US High Yield Index. Also, the fund outperformed the S&P 500 Index which returned -7.56% in the quarter. The strategy was -23.61% down in 2022. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Miller Value Partners highlighted stocks like B. Riley Financial, Inc. (NASDAQ:RILY) in the Q4 2022 investor letter. Headquartered in Los Angeles, California, B. Riley Financial, Inc. (NASDAQ:RILY) is a financial company that provides investment banking and financial services. On January 20, 2023, B. Riley Financial, Inc. (NASDAQ:RILY) stock closed at $41.10 per share. One-month return of B. Riley Financial, Inc. (NASDAQ:RILY) was 28.92%, and its shares lost 32.63% of their value over the last 52 weeks. B. Riley Financial, Inc. (NASDAQ:RILY) has a market capitalization of $1.169 billion.

Miller Value Partners made the following comment about B. Riley Financial, Inc. (NASDAQ:RILY) in its Q4 2022 investor letter:

“B. Riley Financial, Inc. (NASDAQ:RILY) slumped in the quarter after reporting 3Q22 operating revenue of $328.2MM, -9.7% Y/Y but +23.1% sequentially, and Adjusted EPS of $2.64, +25.7% Y/Y. Operating Adjusted EBITDA for the quarter came in at $106.2MM, or a margin of 32.4%, +455 bps Y/Y. Management maintained a quarterly dividend of $1/share, implying an annualized yield of 12.5%, and authorized $50MM worth of share repurchases, or ~5.5% of the company’s market cap. The company provided guidance for 4Q22 Operating Adjusted EBITDA of $95MM, -10.5% sequentially at the midpoint. Additionally, management reported potential 4Q22 exposure to investments related to digital asset mining and crypto services businesses of ~$39MM, “of which $26MM represents a loan to a borrower that has since filed for bankruptcy”, which helped relieve investors’ concerns about the company’s exposure to Core Scientific, the Bitcoin miner which filed for bankruptcy in the quarter.”

Andrey_Popov/Shutterstock.com

Riley Financial, Inc. (NASDAQ:RILY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held B. Riley Financial, Inc. (NASDAQ:RILY) at the end of the third quarter which was 19 in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

Suggested Articles:

• 10 Most Advanced Battery Technologies
• 10 Best Healthcare Stocks for Recession
• 12 52-week Low Dividend Stocks To Consider

Disclosure: None. This article is originally published at Insider Monkey.