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LTS Insiders Just Keep on Buying, But Why?

April 09, 2013 | About:
Monica Wolfe

Monica Wolfe

118 followers
There has been an increase in insider buys in the financial services industries but none with more than Ladenburg Thalmann Financial Services (LTS). The company has reported a large number of executives, not only just buying new shares, but holding on to them. Since the beginning of April there have already been 13 insider buys, and the last reported insider sell was in September 2011.

Ladenburg Thalmann is a financial company that specializes in independent brokerage and advisory services, asset management, personal investment banking, equity research and private client services. Ladenburg Thalmann operates through its six primary subsidiaries: Ladenburg Thalmann Company, Ladenburg Thalmann Asset Management, Triad Advisors, Investacorp, Premier Trust and Securities America.

In the last week alone we’ve seen seven different corporate executives making buys into the company. While the price of the stock isn’t all that impressive, the sheer number of insiders buying into and holding on to company shares is. The average corporate executive in the company currently holds on to at least 250,000 shares of company stock.

Chairman Dr. Phillip Frost has expressed his enthusiasm in the company by buying an additional 30,000 shares last week alone. COO Adam Malamed also added 30,000 shares to his stake in a series of six different transactions last week.



In March the company reported its fourth quarter and full-year 2012 results. The revenue for 2012 was $650.1 million, a 138% increase over revenues of $273.6 million in 2011. The company also reported a net loss of $16.4 million, or $0.09 per basic share in 2012, compared to the net income of $3.9 million, or $0.02 per diluted share in 2011.

In a press release, Ladenburg Thalmann also reports that in 2012 the company’s directors and officers purchased an aggregate of 804,000 shares in open market transactions at a total cost of approximately $1.2 million, representing an average price per share of $1.49.

According to the GuruFocus information, the company’s directors and officers have already bought 120,000 shares in 2013.

The GuruFocus analysis of Ladenburg Thalmann reports that the price of the company is close to a one-year high of $1.70. The company also keeps issuing new debt. Over the past three years it has accumulated $174.959 million of debt.

Richard Lampen, president and CEO of Ladenburg, noted his ever-growing faith in his company: “In 2012, we began to see the substantial benefits of Ladenburg’s leadership position in the independent brokerage and advisory businesses, which we believe is the fastest growing segment of the financial services industry… We look forward to continuing to build upon our success in the attractive independent broker-dealer space while also capitalizing on the recent heightened activity in our capital markets business.”

Market Cap: 306.5 M P/E: n/a Shiller P/E: n/a
P/B: 5.8 P/S: 0.5 EV/EBITDA: n/a
52 Week Low: 1.14 52 Week High: 1.70 Average Volume: 278,345


As of Dec. 31, 2012, Jim Simons was the only guru to hold shares in Ladenburg Thalmann. Simons holds a rather small 12,800 shares in the company.

With its shares up 2.55%, Ladenburg Thalmann trades at $1.61.

Rating: 3.7/5 (3 votes)

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