Stephanie Leniski, a SVP at
Lakeland Financial Corporation (LKFN), recently bought 4,500 shares. The buy increased her stake by 130%, and came to a total cost of $292,680.
This marks the first insider buy since February, when a director bought 360 shares for about $23,000. Otherwise, company insiders, including the CEO and CFO, have been sellers of shares so far this year, with the largest insider sale account for $1.9 million.
Overall, insiders at the regional bank own 3.3% of shares.
Lakeland is up 41% over the past year, far outperforming the overall market. Bank stocks have performed well following a poor performance in 2023 following a series of bank failures.
Lakeland sports a hefty 42% profit margin, but shares are a bit pricey at 2.5 times their book value, a conservative estimate of the value of the bank’s book of loans.
Action to take: Investors may like shares as a momentum play, rather than a value play as seen with other community banks. The momentum underway means investors will likely see further gains as interest rates start to come down. Plus, at current prices, Lakeland pays a 2.9% dividend.
For traders, options are somewhat limited. But the March 2025 $70 calls, last trading for about $1.75, could see mid-double-digit returns or better, provided shares continue to strongly rally over the next six months.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.
