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Trade Alert: The Independent Non-Executive Director Of Hotel Property Investments (ASX:HPI), Lachlan Edwards, Has Just Spent AU$75k Buying 11% More Shares

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Simply Wall St
·3 min read
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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$75k to buy stock, at AU$3.01 per share. That purchase might not be huge but it did increase their holding by 11%.

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$3.04 per share in a AU$77k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$3.00). 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While Hotel Property Investments insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
insider-trading-volume

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).

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. We usually like to see fairly high levels of insider ownership. Insiders own 2.5% of Hotel Property Investments shares, worth about AU$13m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Hotel Property Investments Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Hotel Property Investments insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 4 warning signs we've spotted with Hotel Property Investments (including 1 which is a bit unpleasant).

Of course Hotel Property Investments may not be the best stock to buy. So you may wish to see this free collection of high quality 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. 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.

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