Why Are These Insiders Ignoring Stock Market Doomsayers?

Ladenburg Thalmann Financial Services (NYSEMKT:LTS) also had a high number of insiders who bought shares last week. Chief Executive Officer and President Richard J. Lampen bought 5,000 units of common stock on Thursday at a weighted average cost of $2.24, and currently owns a holding of 1.13 million shares. Executive Vice President Mark Zeitchick acquired 5,000 shares on the same day at prices that ranged from $2.23 to $2.25 per share, all of which are held by MZ Trading LLC (of which the EVP is the sole managing member). After the recent purchase, MZ Trading LLC owns 2.63 million shares. Furthermore, Chief Operating Officer Adam S. Malamed also purchased 5,000 shares at prices ranging from $2.17 to $2.24 per share, enlarging his holding to 478,478 shares. Last but not least, Directors Richard Krasno and Jacqueline M. Simkin bought 5,000 shares and 10,000 shares, respectively. The latter holds a 1.63 million-share stake through the Jacqueline Simkin Revocable Trust, while the former owns 310,500 shares via the Richard M. Krasno Living Trust.

Ladenburg Thalmann Financial Services is a holding company that operates several broker-dealers and investment advisors. The company reported total revenue of $857.79 million for the nine months that ended September 30, up from $656.30 million reported for the same period of the prior year. Despite achieving optimistic top-line growth, the company reported a net loss of $8.95 million for the nine-month period, compared to net income of $20.03 million reported a year ago. The decrease was mainly due to lower revenue in the Ladenburg segment (which has higher margins than in other segments), which was impacted by a decline in equity capital raising for small and mid-cap public companies. The current stock market turmoil and the falling valuations might hamper companies’ willingness to pursue equity raising, which could further impact Ladenburg’s financial performance. Let’s not forget to mention that the stock is already down by 48% over the past year. Mark Coe’s Coe Capital Management holds an ownership stake of 331,490 shares in Ladenburg Thalmann Financial Services (NYSEMKT:LTS) as of September 30.

Disclosure: None