Stonegate Mortgage: 3 Different Insiders Have Purchased Shares During The Last 30 Days

Jun. 6.14 | About: Stonegate Mortgage (SGM)

Summary

3 insiders purchased Stonegate Mortgage 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%.

Stonegate Mortgage Corporation (NYSE:SGM) focuses on originating, acquiring, selling, financing, and servicing residential mortgage loans in the United States.
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Insider buying during the last 30 days

Here is a table of Stonegate Mortgage's insider activity during the last 30 days.

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Richard Kraemer Director June 3 10,000 27,944
shares
+55.7%
Robert Eastep CFO May 19 7,990 9,290 shares +614.6%
James Cutillo CEO May 19 7,500 739,720
shares
+1.0%
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There have been 25,490 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Stonegate Mortgage's insider activity by calendar month.

Month Insider buying / shares Insider selling / shares
June 2014 10,000 0
May 2014 15,490 0
April 2014 0 0
March 2014 0 0
February 2014 0 0
January 2014 0 0
December 2013 0 0
November 2013 0 0
October 2013 450,000 0
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There have been 475,490 shares purchased and there have been zero shares sold by insiders since October 2013. Stonegate Mortgage had its IPO in October 2013.

Financials

Stonegate Mortgage reported the first-quarter financial results on May 15 with the following highlights:

Revenue $38.3 million
Net loss $7.9 million
Cash $17.9 million
Debt $756.6 million
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The three insiders purchased their shares after these results.

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(Source: Earnings presentation)

Competition

Stonegate Mortgage's competitors include Nationstar Mortgage Holdings (NYSE:NSM), Ocwen Financial (NYSE:OCN), and PennyMac Financial Services (NYSE:PFSI). Here is a table comparing these companies.

Company SGM NSM OCN PFSI
Market Cap: 386.28M 3.19B 4.95B 338.71M
Employees: 1,239 6,984 10,100 1,451
Qtrly Rev Growth (yoy): -0.01 -0.08 0.36 0.11
Revenue: 142.53M 1.52B 2.15B 427.68M
Gross Margin: 1.00 1.00 0.92 1.00
Operating Margin: 0.05 0.08 0.33 0.41
Net Income: 4.99M 178.47M 314.40M -32.92M
EPS: 0.24 1.97 2.25 -1.46
P/E: 62.72 18.26 16.34 N/A
PEG (5 yr expected): 0.77 N/A 0.26 0.46
P/S: 2.66 2.06 2.27 0.78
P/B: 1.26 3.11 2.61 1.87
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Stonegate Mortgage has the lowest P/B ratio among these four companies.

Here is a table of these competitors' insider activities during the last 12 months.

Company Insider buying / shares Insider selling / shares
NSM 0 10,000
OCN 1,000 3,705,140
PFSI 632,000 6,420,000
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Only Stonegate Mortgage has seen intensive insider buying during the last 30 days.

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(Source: Earnings presentation)

Conclusion

There have been three different insiders buying Stonegate Mortgage, and there have not been any insiders selling Stonegate Mortgage during the last 30 days. Two of these three insiders increased their holdings by more than 10%. Stonegate Mortgage has an insider ownership of 2.90%.

The three insiders purchased their shares at prices ranging from $13.78 to $15.16. I believe Stonegate Mortgage could be a good pick below $15.16 based on the intensive insider buying.

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(Source: Earnings presentation)

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in SGM 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.