It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Hiremii Limited's (ASX:HMI) case, it's fantastic news for shareholders.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Hiremii

Hiremii Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Jason Carroll bought AU$79k worth of shares at a price of AU$0.054 per share. That means that an insider was happy to buy shares at around the current price of AU$0.058. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Hiremii insiders decided to buy shares at close to current prices. We note that Jason Carroll was both the biggest buyer and the biggest seller.

Over the last year, we can see that insiders have bought 8.35m shares worth AU$408k. But they sold 100.00k shares for AU$6.5k. In total, Hiremii insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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).

Are Hiremii Insiders Buying Or Selling?

There was some insider buying at Hiremii over the last quarter. Chief Commercial Officer & MD Andrew Hornby purchased AU$13k worth of shares in that period. It's great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Insider Ownership Of Hiremii

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. It appears that Hiremii insiders own 36% of the company, worth about AU$2.5m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Hiremii Insiders?

We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Hiremii insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Hiremii is showing 4 warning signs in our investment analysis, and 2 of those don't sit too well with us...

But note: Hiremii 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.

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