Stock Analysis

Founder Shu Liang Jen Just Bought A Handful Of Shares In China Maple Leaf Educational Systems Limited (HKG:1317)

SEHK:1317
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China Maple Leaf Educational Systems Limited (HKG:1317) shareholders (or potential shareholders) will be happy to see that the Founder, Shu Liang Jen, recently bought a whopping HK$13m worth of stock, at a price of HK$1.85. While that only increased their holding size by 0.5%, it is still a big swing by our standards.

View our latest analysis for China Maple Leaf Educational Systems

China Maple Leaf Educational Systems Insider Transactions Over The Last Year

Notably, that recent purchase by Shu Liang Jen is the biggest insider purchase of China Maple Leaf Educational Systems shares that we've seen in the last year. That means that even when the share price was higher than HK$1.83 (the recent price), an insider wanted to purchase shares. 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. To us, it's very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Shu Liang Jen was the only individual insider to buy shares in the last twelve months.

Shu Liang Jen bought a total of 24.74m shares over the year at an average price of HK$2.27. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
SEHK:1317 Insider Trading Volume January 17th 2021

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

Insider Ownership of China Maple Leaf Educational Systems

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. It's great to see that China Maple Leaf Educational Systems insiders own 52% of the company, worth about HK$2.9b. 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 Does This Data Suggest About China Maple Leaf Educational Systems Insiders?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest China Maple Leaf Educational Systems insiders are well aligned, and quite possibly think the share price is too low. Looks promising! While we like knowing 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. To that end, you should learn about the 2 warning signs we've spotted with China Maple Leaf Educational Systems (including 1 which is concerning).

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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