The Independent Non-Executive Director of Hotel Property Investments (ASX:HPI), Lachlan Edwards, Just Bought 8.6% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Hotel Property Investments (ASX:HPI) Independent Non-Executive Director, Lachlan Edwards, recently bought AU$52k worth of stock, for AU$3.05 per share. However, it only increased their shares held by 8.6%, and it wasn't a huge purchase by absolute value, either.

View our latest analysis for Hotel Property Investments

The Last 12 Months Of Insider Transactions At Hotel Property Investments

In fact, the recent purchase by Independent Non-Executive Director Lachlan Edwards was not their only acquisition of Hotel Property Investments shares this year. Earlier in the year, they paid AU$3.04 per share in a AU$77k purchase. That means that an insider was happy to buy shares at around the current price of AU$3.07. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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 Hotel Property Investments insiders decided to buy shares at close to current prices.

While Hotel Property Investments insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Hotel Property Investments is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Hotel Property Investments

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Hotel Property Investments insiders own 2.7% of the company, worth about AU$13m. But they may have an indirect interest through a corporate structure that we haven't picked up on. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Hotel Property Investments Tell Us?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Insiders likely see value in Hotel Property Investments shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 4 warning signs we've spotted with Hotel Property Investments (including 1 which doesn't sit too well with us).

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.

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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.
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