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:
- The stock is purchased by three or more insiders within one month.
- The stock is sold by no insiders in the month of intensive purchasing.
- 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.
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%|
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.
Insider buying / shares
Insider selling / shares
There have been 28,635 shares purchased, and there have been 236,973 shares sold by insiders since January 2013.
HomeStreet reported the full-year 2013 financial results on January 28 with the following highlights:
|Net interest income||$74.4 million|
$17.97 per share
Tangible book value
$17.08 per share
|Qtrly Rev Growth (yoy):||0.23||1.07||0.14|
|PEG (5 yr expected):||N/A||4.84||N/A|
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|
Only HomeStreet has seen intensive insider buying during the last 30 days.
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.