Ladenurg Thalmann Financial: Last Monday, Joseph Giovanniello, Senior Vice President at Ladenburg Thalmann Financial Services (NYSEMKT:LTS), purchased 2,617 shares of common stock, at $1.72 per share. He now holds 66,069 shares, or approximately $116,942 (at $1.77 per share; as of Wednesday, Oct. 2, 11:00 am EST). Currently trading at 0.48 times its trailing sales, the stock is available at an 81% price discount to the industry average.
Joseph Giovanniello also owns 2,000 shares of preferred stock, which boasts an 8% yield. The company had released $115 million worth of preferred stock on May 24th, at $25 per share, in order to pay down its debt. With cash flow showing an upwards trend over the past two years and over $75 billion in management, Ladenburg has been able to meet its large dividend payments regularly.
According to our records, Giovanniello previously increased his stake in the firm in late June, when he purchased 1,595 shares at $1.57. The Senior Vice President surely knew what he was doing, as the stock’s value has risen over the past months. The 12.58% price increase since the 8% yield stocks were issued on May 24th is part of an overall positive trend, which insiders such as Giovanniello were quick to see coming.
Chief Operating Officer, Scott Adam Malamed, also increased his stake in the firm significantly, once the preferred stocks with an 8% yield were released on May 24th. After his purchase of 20,000 shares two weeks ago, he is now holding 288,478 shares. This brings his total stake in the firm up to approximately $510,606 at current stock prices.
Mark Zeitchick also acquired large amounts of stock over the past months, bringing the Executive Vice President’s holdings to 2,156,336 shares. Capitalizing on the high yield offered by the preferred shares, of which Zeitchick owns 4,000 in total, is part of a long term strategy. The recent insider trades on the other hand can offer good short term benefits for investors, as the value of Ladenburg Thalmann’s stock can be expected to continue to rise. Insiders have surely been extracting profits from their latest stock acquisitions, with share value up 7.19% or $0.12 over the past month.
Disclosure: Pablo Erbar holds no position in any stocks mentioned