Altisource Residential: 3 Different Insiders Have Purchased Shares This Month

Feb.26.14 | About: Altisource Residential (RESI)

In this article, I will feature one REIT 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%.

Altisource Residential Corporation (NYSE:RESI) focuses on acquiring, owning, and managing single-family rental properties in the United States.

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Insider buying during the last 30 days

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

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Salah Saabneh EVP Feb 25 2,500 7,200 shares +53.2%
Kenneth Najour CFO Feb 24 2,000 12,000 shares +20.0%
Ashish Pandey CEO Feb 24 10,000 30,011 shares +50.0%
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There have been 14,500 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

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

Month

Insider buying / shares

Insider selling / shares

February 2014 14,500 0
January 2014 0 0
December 2013 0 0
November 2013 0 0
October 2013 0 0
September 2013 0 0
August 2013 0 0
July 2013 0 0
June 2013 0 0

May 2013

26,500

0

April 2013

0 0

March 2013

0

0

February 2013

0 0

January 2013

0

0
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There have been 41,000 shares purchased, and there have been zero shares sold by insiders since January 2013.

Financials

Altisource Residential reported the full-year 2013 financial results on February 20 with the following highlights:

Revenue $71.6 million
Net income $39.6 million
Cash $116.0 million
Debt $602.4 million
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(Source: Earnings presentation)

Competition

Altisource Residential's competitors include American Residential Properties (NYSE:ARPI), and Silver Bay Realty Trust Corp. (NYSE:SBY). Here is a table comparing these companies.

Company RESI ARPI SBY
Market Cap: 1.64B 587.42M 613.54M
Employees: N/A 45 N/A
Qtrly Rev Growth (yoy): N/A 15.70 18.42
Revenue: 71.61M 28.09M 35.67M
Gross Margin: N/A 0.46 0.02
EBITDA: 43.48M -290.00K -5.32M
Operating Margin: 0.61 -0.58 -0.59
Net Income: 39.60M -21.24M -18.69M
EPS: 1.61 -0.96 -0.48
P/E: 17.92 N/A N/A
PEG (5 yr expected): 0.50 -1.04 N/A
P/S: 22.90 20.93 17.17
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Only Altisource Residential is profitable 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
ARPI 16,000 0
SBY 210,551 0
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Only Altisource Residential has seen intensive insider buying during the last 30 days.

Conclusion

There have been three different insiders buying Altisource Residential, and there have not been any insiders selling Altisource Residential during the last 30 days. All three of these insiders increased their holdings by more than 10%. Altisource Residential has an insider ownership of 28.72%.

Altisource Residential has a pro forma NAV per share of $28.30. I believe Altisource Residential could be a good pick below $28.30 based on the intensive insider buying.

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(Source: Earnings presentation)

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in RESI 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.