Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Hotel Property Investments (ASX:HPI), it sends a favourable message to the company’s shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Hotel Property Investments
The Last 12 Months Of Insider Transactions At Hotel Property Investments
Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Lachlan Edwards for AU$81k worth of shares, at about AU$3.50 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$3.92. 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.
In the last twelve months Hotel Property Investments insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders at Hotel Property Investments Have Bought Stock Recently
We saw some Hotel Property Investments insider buying shares in the last three months. Insiders purchased AU$47k worth of shares in that period. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.
Does Hotel Property Investments Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that Hotel Property Investments insiders own about AU$10m worth of shares (which is 1.3% of the company). 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.
What Might The Insider Transactions At Hotel Property Investments Tell Us?
Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn’t worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Hotel Property Investments and we see no evidence to suggest they are worried about the future. While we like knowing what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we’ve found that Hotel Property Investments has 5 warning signs (2 are significant!) that deserve your attention before going any further with your analysis.
But note: Hotel Property Investments may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
