Trade Alert: The Founder Of China Maple Leaf Educational Systems Limited (HKG:1317), Shu Liang Jen, Has Just Spent CN¥2.3m Buying A Few More Shares

Potential China Maple Leaf Educational Systems Limited (HKG:1317) shareholders may wish to note that the Founder, Shu Liang Jen, recently bought HK$2.3m worth of stock, paying HK$2.27 for each share. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

Check out our latest analysis for China Maple Leaf Educational Systems

The Last 12 Months Of Insider Transactions At China Maple Leaf Educational Systems

Notably, that recent purchase by Founder Shu Liang Jen was not the only time they bought China Maple Leaf Educational Systems shares this year. They previously made an even bigger purchase of HK$5.3m worth of shares at a price of HK$2.85 per share. That means that an insider was happy to buy shares at above the current price of HK$2.15. Their view may have changed since then, but at least it shows they felt optimistic at the time. 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 during the last year.

Shu Liang Jen purchased 14.74m shares over the year. The average price per share was HK$2.55. 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!

China Maple Leaf Educational Systems 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 China Maple Leaf Educational Systems

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that China Maple Leaf Educational Systems insiders own 52% of the company, worth about HK$3.4b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At China Maple Leaf Educational Systems Tell Us?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about China Maple Leaf Educational Systems. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing China Maple Leaf Educational Systems. Case in point: We've spotted 2 warning signs for China Maple Leaf Educational Systems you should be aware of, and 1 of these is concerning.

Of course China Maple Leaf Educational Systems may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

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