HMS Holdings Corp. (NASDAQ:HMSY) provides cost containment services to government and private healthcare payers and sponsors.
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Insider buying during the last 30 days
Here is a table of HMS Holdings' insider activity during the last 30 days.
|Name||Title||Trade Date||Shares Purchased||Current Ownership||Increase In Shares|
|Bart Schwartz||Director||May 19||1,500||20,623 shares||+7.8%|
|Eugene Defelice||EVP||May 19||1,000||10,980 shares||+10.0%|
|Craig Callen||Director||May 15||3,000||10,530 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.
|Month||Insider buying / shares||Insider selling / shares|
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.
HMS Holdings reported the first-quarter financial results on May 9 with the following highlights:
|Net income||$3.4 million|
The three insiders purchased their shares after these results.
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)
|Qtrly Rev Growth (yoy):||-0.10||0.19|
|PEG (5 yr expected):||3.74||2.20|
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.
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.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in HMSY 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.