Xuechun Li Is The Executive Chairman of Minsheng Education Group Company Limited (HKG:1569) And Just Spent CN¥2.4m On Shares

Potential Minsheng Education Group Company Limited (HKG:1569) shareholders may wish to note that the Executive Chairman, Xuechun Li, recently bought HK$2.4m worth of stock, paying HK$1.22 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 Minsheng Education Group

The Last 12 Months Of Insider Transactions At Minsheng Education Group

In fact, the recent purchase by Executive Chairman Xuechun Li was not their only trade of Minsheng Education Group shares this year. They previously made a sale of -HK$244m worth of shares at a price of HK$1.22 per share. That means that even when the share price was below the current price of HK$1.33, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 6.3%of Xuechun Li's holding.

Xuechun Li bought a total of 201.95m shares over the year at an average price of HK$1.22. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Minsheng Education Group 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 Minsheng Education Group

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Minsheng Education Group insiders own 71% of the company, currently worth about HK$4.0b based on the recent share price. 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 Minsheng Education Group Tell Us?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Minsheng Education Group. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Minsheng Education Group has 3 warning signs and it would be unwise to ignore these.

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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