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Insiders Are Buying Hudson Global

September 10, 2013 | About:
maarnio

Markus Aarnio

1 followers
In this article, I will feature one talent services company that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

  • The stock is purchased by three or more insiders within one month
  • The stock is sold by no insiders in the month of intensive purchasing.
  • At least two purchasers increase their holdings by more than 10%.
Hudson Global (HSON) provides professional-level recruitment and related talent solutions for small to large-sized corporations and government agencies worldwide.



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Insider buying during the last 30 days


  • Latham Williams purchased 744 shares on August 20 - September 5 pursuant to a Rule 10b5-1 trading plan. Latham Williams currently holds 41,358 shares or 0.1% of the company. Latham Williams acts as the Senior Vice President of Legal Affairs and Administration. Latham Williams increased his holdings by 1.8% during the past 30 days.
  • David Offensend purchased 28,437 shares on August 20 - September 5 pursuant to a Rule 10b5-1 trading plan. David Offensend currently holds 213,001 shares or 0.7% of the company. David Offensend serves as a director of the company. David Offensend increased his holdings by 15.4% during the past 30 days.
  • Stephen Nolan purchased 12,081 shares on August 23 - September 5 pursuant to a Rule 10b5-1 trading plan. Stephen Nolan currently holds 112,081 shares or 0.3% of the company. Stephen Nolan is executive vice president and chief financial officer of Hudson Global. Stephen Nolan increased his holdings by 12.1% during the past 30 days.
  • Manuel Marquez purchased 12,084 shares on August 23 - September 5 pursuant to a Rule 10b5-1 trading plan. Manuel Marquez currently holds 65,240 shares or 0.2% of the company. Manuel Marquez is the chairman and chief executive officer of Hudson Global. Manuel Marquez increased his holdings by 22.7% during the past 30 days.
  • Jennifer Laing purchased 7,114 shares on August 20 - September 5 pursuant to a Rule 10b5-1 trading plan. Jennifer Laing currently holds 17,114 shares or less than 0.1% of the company. Jennifer Laing serves as a director of the company. Jennifer Laing increased her holdings by 71.1% during the past 30 days.
  • Robert Dubner purchased 3,000 shares on August 22-28 pursuant to a Rule 10b5-1 trading plan. Robert Dubner currently holds 3,000 shares or less than 0.1% of the company. Robert Dubner serves as a director of the company. Robert Dubner increased his holdings from zero shares to 3,000 shares during the past 30 days.
Insider buying by calendar month

Here is a table of Hudson Global's insider-trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
September 20136,7250
August 2013117,2050
July 201300
June 201300
May 201300
April 201300
March 201300
February 201300
January 201300


There have been 123,930 shares purchased and there have been zero shares sold by the insiders this year.

Financials

Hudson Global reported the second-quarter financial results on July 31 with the following highlights:

Revenue$171.4 million
Net loss$5.8 million
Cash$28.3 million
Debt$0.7 million


Outlook

Given the slower seasonal period of the third quarter and current economic conditions, Hudson Global expects third quarter 2013 revenue of between $165 million to $175 million and adjusted EBITDA to be between negative $3 million and negative $5 million at prevailing exchange rates before restructuring charges. The company anticipates the remaining $0.8 million of board approved restructuring charges to be incurred in the second half of 2013. In the third quarter of 2012, revenue was $187.9 million and adjusted EBITDA was $1.5 million.

Competition

Hudson Global's competitors include Kelly Services (KELYA) and Robert Half International (RHI). Here is a table comparing these three companies.

CompanyHSONKELYARHI
Market Cap:100.15M720.85M5.22B
Employees:2,0008,10012,000
Qtrly Rev Growth (yoy):-0.160.000.03
Revenue:709.19M5.41B4.15B
Gross Margin:0.360.160.40
EBITDA:-2.13M85.40M429.01M
Operating Margin:-0.010.010.09
Net Income:-16.56M47.10M234.64M
EPS:-0.511.271.69
P/E:N/A15.2222.57
PEG (5 yr expected):-0.641.341.46
P/S:0.140.131.26


Hudson Global has the second lowest P/S ratio among these three companies. Kelly Services has seen five insider sell transactions this year. Robert Half International has seen two insider sell transactions this year.

Conclusion

There have been six different insiders buying Hudson Global and there have not been any insiders selling Hudson Global during the last 30 days. Five out of these six insiders increased their holdings by more than 10%. Hudson Global has an insider ownership of 1.70%.

There are two analyst buy ratings, one neutral rating and zero sell ratings with an average target price of $3.67. Hudson Global has a book value of $2.70 per share. I believe the stock could be a good pick at the book value of $2.70 per share.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

About the author:

Markus Aarnio
I have 15 years of investing experience. I have traded stocks, commodities and Forex markets.

Rating: 4.0/5 (2 votes)

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