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Barrington Thinks Ladenburg Thalmann Financial’s Stock is Going to Recover


Barrington analyst Alexander Paris reiterated a Buy rating on Ladenburg Thalmann Financial (NYSE: LTS) today and set a price target of $4.75. The company’s shares opened today at $2.57, close to its 52-week low of $2.32.

Paris noted:

“We believe LTS has significant earnings upside as interest rates continue to rise. We estimate that for each 25 bps increase in the Fed Funds rate, adjusted EBITDA would increase by $4.5‐5.0 million. Interest revenue from cash sweep has already increased from $2.0 million in 2015 to $22.1 million in 2017 and we estimate it will rise further to more than $50 million in 2018.”

According to TipRanks.com, Paris is a 4-star analyst with an average return of 9.2% and a 50.7% success rate. Paris covers the Services sector, focusing on stocks such as Adtalem Global Education Inc, American Public Education, and Franklin Covey Company.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Ladenburg Thalmann Financial with a $4.75 average price target.

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The company has a one-year high of $3.84 and a one-year low of $2.32. Currently, Ladenburg Thalmann Financial has an average volume of 296.5K.

Based on the recent corporate insider activity of 64 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of LTS in relation to earlier this year. Last month, Phillip Frost, a Major Shareholder at LTS bought 600,000 shares for a total of $948,000.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Ladenburg Thalmann Financial Services, Inc. is a holding company, which engages in investment banking and research, institutional sales and trading, asset management services, wholesale life insurance brokerage and trust services through its principal subsidiaries.