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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:

  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%.

Home Loan Servicing Solutions (NASDAQ:HLSS) engages in the acquisition of mortgage servicing assets.

(click to enlarge)

Insider buying during the last 30 days

Here is a table of Home Loan Servicing Solutions' insider-trading activity during the last 30 days.

NameTitleTrade DateShares PurchasedCurrent OwnershipIncrease In Shares
Robert McGinnisDirectorFeb 272,00014,500 shares+16.0%
James LauterCFOFeb 202,00012,000 shares+20.0%
John Van VlackPresidentFeb 198,495125,000 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.

Month

Insider buying / shares

Insider selling / shares

February 201412,4950
January 201400
December 201300
November 201300
October 201300
September 201300
August 20133,5500
July 201300
June 201300

May 2013

11,955

0

April 2013

7500

March 2013

0

0

February 2013

8,0000

January 2013

0

0

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.

Financials

Home Loan Servicing Solutions reported the full-year 2013 financial results on February 6 with the following highlights:

Revenue$249.9 million
Net income$127.7 million
Book value$17.37 per share

(click to enlarge)

(Source: Earnings presentation)

Competition

Home Loan Servicing Solutions' competitors include Annaly (NYSE:NLY), and Hatteras (NYSE:HTS). Here is a table comparing these companies.

CompanyHLSSNLYHTS
Market Cap:1.46B10.59B1.91B
Employees:18147N/A
Qtrly Rev Growth (yoy):2.00-0.26N/A
Revenue:249.87M3.81B184.84M
Gross Margin:0.991.001.00
Operating Margin:0.910.950.85
Net Income:127.69M3.33B-156.06M
EPS:1.993.45-1.59
P/E:10.313.24N/A
PEG (5 yr expected):1.962.73N/A
P/S:5.842.7810.24
Short Float:2.47%3.03%3.59%

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.

CompanyInsider buying / sharesInsider selling / shares
NLY238,4060
HTS12,4000

Only Home Loan Servicing Solutions has seen intensive insider buying during the last 30 days.

Conclusion

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.

Source: Home Loan Servicing Solutions: 3 Different Insiders Have Purchased Shares During The Last 30 Days