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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in HireQuest, Inc.'s (NASDAQ:HQI) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
HireQuest Insider Transactions Over The Last Year
The Chairman Richard Hermanns made the biggest insider purchase in the last 12 months. That single transaction was for US$121k worth of shares at a price of US$12.07 each. So it's clear an insider wanted to buy, at around the current price, which is US$13.18. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the HireQuest insiders decided to buy shares at close to current prices.
In the last twelve months HireQuest insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for HireQuest
HireQuest 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 Of HireQuest
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that HireQuest insiders own 43% of the company, worth about US$79m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The HireQuest Insider Transactions Indicate?
It doesn't really mean much that no insider has traded HireQuest shares in the last quarter. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like HireQuest insiders think the business has merit. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 3 warning signs with HireQuest and understanding these should be part of your investment process.