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HOMESTREET Earnings Preview: Mixed Signals Ahead

HOMESTREET (HMST) shows an expected negative EPS of -$0.07 with revenues at $47.5M. Insider selling outnumbers buying, hinting at uncertainty. While some analysts support it with buy ratings, hedge funds display mixed activity.

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AI Rating:   4

Analyst Earnings Expectations: HOMESTREET is forecasted to report an earnings per share (EPS) of -$0.07 on revenues of $47,544,240. This unfavorable EPS indicates potential negative market sentiment leading up to the earnings release. Poor earnings expectations might pressure stock prices, reflecting concerns about the company's growth prospects.

Insider Trading Dynamics: Recent insider trading shows a higher volume of sales compared to purchases, with key executives selling shares. Insiders usually have informed perspectives on their company’s performance; thus, consistent selling could signal lack of confidence in upcoming earnings or strategic changes within the company. John Michel, CFO, sold a significant number of shares, which could be viewed negatively by the market.

Hedge Fund Activity: The activity among institutional investors reveals a mixed landscape: 60 funds increased their stakes, while 42 reduced them. Notably, Morgan Stanley and Petiole USA drastically decreased their holdings. On the contrary, some funds like Phase 2 Partners, increased their investments, which could indicate confidence from certain institutional investors. This duality in institutional reactions likely signifies uncertainty among the broader investment community.

Analyst Ratings: The company has garnered attention from analysts, receiving buy ratings from two firms suggesting some optimism. However, the absence of sell ratings enhances the cautious outlook rather than a robust endorsement for investment at this moment. The anticipated negative EPS casts a shadow over the positive analyst recommendations, creating mixed signals for prospective investors.

Stocks:  HMST