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In this article, I will feature one bank that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

  1. The stock is purchased by three or more insiders within one month.
  2. The stock is sold by no insiders in the month of intensive purchasing.
  3. At least two purchasers increased their holdings by more than 10%.

HomeStreet (NASDAQ:HMST) provides various financial services to consumers and businesses in the Pacific Northwest and Hawaii.

(click to enlarge)

Insider buying during the last 30 days

Here is a table of HomeStreet's insider-trading activity during the last 30 days by insider.

NameTitleTrade DateShares PurchasedCurrent OwnershipIncrease In Shares
Douglas SmithDirectorFeb 5-65,70059,140 shares+10.7%
George KirkDirectorFeb 56009,602 shares+6.7%
Jeffrey NewgardEVPJan 305,48214,915 shares+58.1%

There have been 11,782 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of HomeStreet's insider-trading activity by calendar month.

Month

Insider buying / shares

Insider selling / shares

February 20146,3000
January 20145,4820
December 2013047,500
November 20135,00089,000
October 20131,2850
September 2013013,800
August 2013020,380
July 201300
June 201300

May 2013

8,000

35,764

April 2013

68

0

March 2013

0

30,529

February 2013

2,500

0

January 2013

0

0

There have been 28,635 shares purchased, and there have been 236,973 shares sold by insiders since January 2013.

Financials

HomeStreet reported the full-year 2013 financial results on January 28 with the following highlights:

Net interest income$74.4 million

Net income

$23.8 million

Book value

$17.97 per share

Tangible book value

$17.08 per share

Competition

HomeStreet's competitors include Banc Of California (NYSE:BANC), and California Republic Bancorp (OTCQB:CRPB). Here is a table comparing these companies.

CompanyHMSTBANCCRPB
Market Cap:253.57M240.76M123.48M
Employees:1,502572N/A
Qtrly Rev Growth (yoy):0.231.070.14
Revenue:89.00M147.69M41.16M
Operating Margin:0.420.050.28
Net Income:23.81M-7.98M7.25M
EPS:1.61-0.591.49
P/E:10.84N/A15.96
PEG (5 yr expected):N/A4.84N/A
P/S:2.851.652.97
P/B:0.971.052.20

HomeStreet has the lowest P/B ratio among these three companies.

Here is a table of these competitors' insider-trading activities during the last 12 months.

CompanyInsider buying / sharesInsider selling / shares
BANC98,7353,816
CRPBN/AN/A

Only HomeStreet has seen intensive insider buying during the last 30 days.

Conclusion

There have been three different insiders buying HomeStreet, and there have not been any insiders selling HomeStreet during the last 30 days. Two of these three insiders increased their holdings by more than 10%. HomeStreet has an insider ownership of 4.00%.

HomeStreet has a book value of $17.97 per share, and the stock is currently trading at $17.46. I believe the stock could be a good pick below the book value based on the intensive insider buying.

Source: HomeStreet: 3 Different Insiders Have Purchased Shares This Year