When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Hotel Property Investments' (ASX:HPI) instance, it's good news for shareholders.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Hotel Property Investments

The Last 12 Months Of Insider Transactions At Hotel Property Investments

The Independent Non-Executive Director Lachlan Edwards made the biggest insider purchase in the last 12 months. That single transaction was for AU$81k worth of shares at a price of AU$3.50 each. That means that even when the share price was higher than AU$2.92 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months Hotel Property Investments insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below! 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.

Insiders At Hotel Property Investments Have Bought Stock Recently

Over the last quarter, Hotel Property Investments insiders have spent a meaningful amount on shares. In total, insiders bought AU$224k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.



Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own AU$7.4m worth of Hotel Property Investments stock, about 1.3% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. We consider this fairly low insider ownership.

So What Do The Hotel Property Investments Insider Transactions Indicate?

The recent insider purchases are heartening. And the longer term insider transactions also give 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hotel Property Investments. Our analysis shows 5 warning signs for Hotel Property Investments (2 shouldn't be ignored!) and we strongly recommend you look at these before investing.

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.

Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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