Hiremii Insider Confidence Rewarded, Stock Hits AU$8.1m Market Cap

Last week, Hiremii Limited (ASX:HMI) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 10.0% last week, resulting in a AU$736k increase in the company's market worth, implying a 24% gain on their initial purchase. As a result, the stock they originally bought for AU$101.5k is now worth AU$126.4k.

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.

Our free stock report includes 2 warning signs investors should be aware of before investing in Hiremii. Read for free now.

Hiremii Insider Transactions Over The Last Year

The insider Jason Carroll made the biggest insider purchase in the last 12 months. That single transaction was for AU$102k worth of shares at a price of AU$0.048 each. We do like to see buying, but this purchase was made at well below the current price of AU$0.055. 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.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Hiremii

Hiremii is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Hiremii insiders own about AU$3.4m worth of shares (which is 42% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Hiremii Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Hiremii insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Hiremii and understanding these should be part of your investment process.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.