HomeStreet: 3 Different Insiders Have Purchased Shares This Year

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 |  Includes: BANC, CRPB, HMST
by: Markus Aarnio

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.

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Insider buying during the last 30 days

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

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Douglas Smith Director Feb 5-6 5,700 59,140 shares +10.7%
George Kirk Director Feb 5 600 9,602 shares +6.7%
Jeffrey Newgard EVP Jan 30 5,482 14,915 shares +58.1%
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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 2014 6,300 0
January 2014 5,482 0
December 2013 0 47,500
November 2013 5,000 89,000
October 2013 1,285 0
September 2013 0 13,800
August 2013 0 20,380
July 2013 0 0
June 2013 0 0

May 2013

8,000

35,764

April 2013

68

0

March 2013

0

30,529

February 2013

2,500

0

January 2013

0

0

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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

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Competition

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

Company HMST BANC CRPB
Market Cap: 253.57M 240.76M 123.48M
Employees: 1,502 572 N/A
Qtrly Rev Growth (yoy): 0.23 1.07 0.14
Revenue: 89.00M 147.69M 41.16M
Operating Margin: 0.42 0.05 0.28
Net Income: 23.81M -7.98M 7.25M
EPS: 1.61 -0.59 1.49
P/E: 10.84 N/A 15.96
PEG (5 yr expected): N/A 4.84 N/A
P/S: 2.85 1.65 2.97
P/B: 0.97 1.05 2.20
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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.

Company Insider buying / shares Insider selling / shares
BANC 98,735 3,816
CRPB N/A N/A
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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.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in HMST over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.