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

Jun. 2.14 | About: HMS Holdings (HMSY)

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.
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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%
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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
May 2014 5,500 0
April 2014 0 0
March 2014 0 0
February 2014 0 12,000
January 2014 0 47,000
December 2013 0 12,000
November 2013 0 32,667
October 2013 0 12,000
September 2013 0 12,000
August 2013 0 12,000
July 2013 0 12,000
June 2013 0 15,000
May 2013 0 0
April 2013 0 10,000
March 2013 0 150,444
February 2013 0 8,611
January 2013 0 0
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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
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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.

Company HMSY PFMT
Market Cap: 1.65B 459.85M
Employees: 2,295 1,479
Qtrly Rev Growth (yoy): -0.10 0.19
Revenue: 479.86M 264.56M
Gross Margin: 0.35 0.63
EBITDA: 120.01M 88.41M
Operating Margin: 0.15 0.30
Net Income: 36.37M 40.86M
EPS: 0.41 0.83
P/E: 45.85 11.46
PEG (5 yr expected): 3.74 2.20
P/S: 3.48 1.73
P/B: 3.27 5.62
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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.

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.