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

Mar. 2.14 | About: Home Loan (HLSS)

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.

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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%
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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 2014 12,495 0
January 2014 0 0
December 2013 0 0
November 2013 0 0
October 2013 0 0
September 2013 0 0
August 2013 3,550 0
July 2013 0 0
June 2013 0 0

May 2013

11,955

0

April 2013

750 0

March 2013

0

0

February 2013

8,000 0

January 2013

0

0
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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
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(Source: Earnings presentation)

Competition

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

Company HLSS NLY HTS
Market Cap: 1.46B 10.59B 1.91B
Employees: 18 147 N/A
Qtrly Rev Growth (yoy): 2.00 -0.26 N/A
Revenue: 249.87M 3.81B 184.84M
Gross Margin: 0.99 1.00 1.00
Operating Margin: 0.91 0.95 0.85
Net Income: 127.69M 3.33B -156.06M
EPS: 1.99 3.45 -1.59
P/E: 10.31 3.24 N/A
PEG (5 yr expected): 1.96 2.73 N/A
P/S: 5.84 2.78 10.24
Short Float: 2.47% 3.03% 3.59%
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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
NLY 238,406 0
HTS 12,400 0
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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.

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.