Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Hiremii Limited (ASX:HMI), that sends out a positive message to the company's shareholders.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Hiremii

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. That implies that an insider found the current price of AU$0.052 per share to be enticing. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. 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.

Over the last year, we can see that insiders have bought 6.60m shares worth AU$259k. But they sold 377.75k shares for AU$18k. In the last twelve months there was more buying than selling by Hiremii insiders. Their average price was about AU$0.039. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!

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.

Does Hiremii Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Hiremii insiders own 43% of the company, currently worth about AU$3.2m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Hiremii Tell Us?

It doesn't really mean much that no insider has traded Hiremii shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Hiremii insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hiremii. Every company has risks, and we've spotted 3 warning signs for Hiremii (of which 1 is potentially serious!) you should know about.

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.