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Summary

  • 3 insiders purchased HMS Holdings stock within one month.
  • The stock was sold by no insiders in the month of intensive purchasing.
  • 2 of these 3 insiders increased their holdings by more than 10%.

HMS Holdings Corp. (NASDAQ:HMSY) provides cost containment services to government and private healthcare payers and sponsors.
(click to enlarge)

Insider buying during the last 30 days

Here is a table of HMS Holdings' insider activity during the last 30 days.

NameTitleTrade DateShares PurchasedCurrent OwnershipIncrease In Shares
Bart SchwartzDirectorMay 191,50020,623 shares+7.8%
Eugene DefeliceEVPMay 191,00010,980 shares+10.0%
Craig CallenDirectorMay 153,00010,530 shares+39.8%

There have been 5,500 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of HMS Holdings' insider activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
May 20145,5000
April 201400
March 201400
February 2014012,000
January 2014047,000
December 2013012,000
November 2013032,667
October 2013012,000
September 2013012,000
August 2013012,000
July 2013012,000
June 2013015,000
May 201300
April 2013010,000
March 20130150,444
February 201308,611
January 201300

There have been 5,500 shares purchased and there have been 335,722 shares sold by insiders since January 2013. The month of May 2014 has seen all of the insider buying.

Financials

HMS Holdings reported the first-quarter financial results on May 9 with the following highlights:

Revenue$104.7 million
Net income$3.4 million
Cash$76.3 million
Debt$197.8 million

The three insiders purchased their shares after these results.

Outlook

HMS Holdings expects 10%-11% growth in non-Medicare RAC revenue in 2014, along with expansion of operating margin by 5%-6%.

(Source: Earnings presentation)

Competition

HMS Holdings' competitors include Performant Financial (NASDAQ:PFMT). Here is a table comparing these two companies.

CompanyHMSYPFMT
Market Cap:1.65B459.85M
Employees:2,2951,479
Qtrly Rev Growth (yoy):-0.100.19
Revenue:479.86M264.56M
Gross Margin:0.350.63
EBITDA:120.01M88.41M
Operating Margin:0.150.30
Net Income:36.37M40.86M
EPS:0.410.83
P/E:45.8511.46
PEG (5 yr expected):3.742.20
P/S:3.481.73
P/B:3.275.62

HMS Holdings has a lower P/B ratio than Performant Financial. In Performant Financial, there have been zero shares purchased and there have been 22,000 shares sold by insiders this year. Only HMS Holdings has seen intensive insider buying during the last 30 days.

Conclusion

There have been three different insiders buying HMS Holdings, and there have not been any insiders selling HMS Holdings during the last 30 days. Two of these three insiders increased their holdings by more than 10%. HMS Holdings has an insider ownership of 1.49%.

The three insiders purchased their shares at prices ranging from $17.29 to $17.39. I believe HMS Holdings could be a good pick below $17.39 based on the intensive insider buying.

Source: HMS Holdings: 3 Different Insiders Have Purchased Shares During The Last 30 Days