In this article, I will feature one financial stock 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%.
Home Loan Servicing Solutions (NASDAQ:HLSS) engages in the acquisition of mortgage servicing assets.
Insider buying during the last 30 days
Here is a table of Home Loan Servicing Solutions' insider-trading activity during the last 30 days.
|Name||Title||Trade Date||Shares Purchased||Current Ownership||Increase In Shares|
|Robert McGinnis||Director||Feb 27||2,000||14,500 shares||+16.0%|
|James Lauter||CFO||Feb 20||2,000||12,000 shares||+20.0%|
|John Van Vlack||President||Feb 19||8,495||125,000 shares||+7.3%|
There have been 12,495 shares purchased by insiders during the last 30 days.
Insider buying by calendar month
Here is a table of Home Loan Servicing Solutions' insider-trading activity by calendar month.
Insider buying / shares
Insider selling / shares
There have been 36,750 shares purchased, and there have been zero shares sold by insiders since January 2013. The month of February 2014 has seen the most insider buying.
Home Loan Servicing Solutions reported the full-year 2013 financial results on February 6 with the following highlights:
|Net income||$127.7 million|
|Book value||$17.37 per share|
(Source: Earnings presentation)
|Qtrly Rev Growth (yoy):||2.00||-0.26||N/A|
|PEG (5 yr expected):||1.96||2.73||N/A|
Home Loan Servicing Solutions has the lowest short float among these three companies.
Here is a table of these competitors' insider-trading activities during the last six months.
|Company||Insider buying / shares||Insider selling / shares|
Only Home Loan Servicing Solutions has seen intensive insider buying during the last 30 days.
There have been three different insiders buying Home Loan Servicing Solutions, and there have not been any insiders selling Home Loan Servicing Solutions during the last 30 days. Two of these three insiders increased their holdings by more than 10%. Home Loan Servicing Solutions has an insider ownership of 0.20%.
The insiders purchased their shares at prices ranging from $19.91 to $20.63. I believe Home Loan Servicing Solutions could be a good pick below $20 based on the intensive insider buying.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in HLSS 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.