With Hiremii Up 11%, Insider Buyers Count Their Returns

Last week, Hiremii Limited (ASX:HMI) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 11% last week, resulting in a AU$674k increase in the company's market worth, implying a 23% gain on their initial purchase. As a result, the stock they originally bought for AU$316.8k is now worth AU$389.6k.

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.

Check out our latest analysis for Hiremii

The Last 12 Months Of Insider Transactions At Hiremii

In fact, the recent purchase by Jason Carroll was the biggest purchase of Hiremii shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of AU$0.049. 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. The good news for Hiremii share holders is that insiders were buying at near the current price. Notably Jason Carroll was also the biggest seller.

Happily, we note that in the last year insiders paid AU$317k for 7.95m shares. On the other hand they divested 377.75k shares, for AU$18k. In total, Hiremii insiders bought more than they sold over the last year. They paid about AU$0.04 on average. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insiders At Hiremii Have Bought Stock Recently

Over the last three months, we've seen significantly more insider buying, than insider selling, at Hiremii. insider Jason Carroll spent AU$102k on stock. But insider Jason Carroll sold shares worth AU$18k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.

Insider Ownership Of Hiremii

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. Hiremii insiders own about AU$2.7m worth of shares (which is 45% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Hiremii Insiders?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Hiremii. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hiremii. Be aware that Hiremii is showing 3 warning signs in our investment analysis, and 2 of those can't be ignored...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list 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 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.

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