Even if it's not a huge purchase, we think it was good to see that Lachlan Edwards, the Independent Non-Executive Director of Hotel Property Investments (ASX:HPI) recently shelled out AU$68k to buy stock, at AU$3.40 per share. However, it only increased their shares held by 6.8%, and it wasn't a huge purchase by absolute value, either.

Check out our latest analysis for Hotel Property Investments

Hotel Property Investments Insider Transactions Over The Last Year

Notably, that recent purchase by Independent Non-Executive Director Lachlan Edwards was not the only time they bought Hotel Property Investments shares this year. Earlier in the year, they paid AU$2.92 per share in a AU$75k purchase. We do like to see buying, but this purchase was made at well below the current price of AU$3.32. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Lachlan Edwards purchased 104.53k shares over the year. The average price per share was AU$3.06. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date! insider-trading-volume

Hotel Property Investments is not the only stock insiders are buying. So take a peek at this freelist of growing companies with insider buying.

Does Hotel Property Investments Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Hotel Property Investments insiders own 1.4% of the company, worth about AU$8.2m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.



So What Do The Hotel Property Investments Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Hotel Property Investments stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 5 warning signs (2 can't be ignored!) that you ought to be aware of before buying any shares in Hotel Property Investments.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this freelist of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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