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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.
(click to enlarge)

Insider buying during the last 30 days

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

NameTitleTrade DateShares PurchasedCurrent OwnershipIncrease In Shares
Richard KraemerDirectorJune 310,00027,944
shares
+55.7%
Robert EastepCFOMay 197,9909,290 shares+614.6%
James CutilloCEOMay 197,500739,720
shares
+1.0%

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.

MonthInsider buying / sharesInsider selling / shares
June 201410,0000
May 201415,4900
April 201400
March 201400
February 201400
January 201400
December 201300
November 201300
October 2013450,0000

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

The three insiders purchased their shares after these results.

(click to enlarge)

(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.

CompanySGMNSMOCNPFSI
Market Cap:386.28M3.19B4.95B338.71M
Employees:1,2396,98410,1001,451
Qtrly Rev Growth (yoy):-0.01-0.080.360.11
Revenue:142.53M1.52B2.15B427.68M
Gross Margin:1.001.000.921.00
Operating Margin:0.050.080.330.41
Net Income:4.99M178.47M314.40M-32.92M
EPS:0.241.972.25-1.46
P/E:62.7218.2616.34N/A
PEG (5 yr expected):0.77N/A0.260.46
P/S:2.662.062.270.78
P/B:1.263.112.611.87

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.

CompanyInsider buying / sharesInsider selling / shares
NSM010,000
OCN1,0003,705,140
PFSI632,0006,420,000

Only Stonegate Mortgage has seen intensive insider buying during the last 30 days.

(click to enlarge)

(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.

(click to enlarge)

(Source: Earnings presentation)

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