Insider Buying: The China Chunlai Education Group Co., Ltd. (HKG:1969) Vice Chairman of Board Just Bought 22% More Shares

Even if it's not a huge purchase, we think it was good to see that Xiaohui Hao, the Vice Chairman of Board of China Chunlai Education Group Co., Ltd. (HKG:1969) recently shelled out HK$230k to buy stock, at HK$1.35 per share. That purchase might not be huge but it did increase their holding by 22%.

Check out our latest analysis for China Chunlai Education Group

China Chunlai Education Group Insider Transactions Over The Last Year

Notably, that recent purchase by Xiaohui Hao is the biggest insider purchase of China Chunlai Education Group shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of HK$1.45. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the China Chunlai Education Group insider decided to buy shares at close to current prices. Xiaohui Hao was the only individual insider to buy during the last year. We note that Xiaohui Hao was also the biggest seller.

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!

China Chunlai Education Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does China Chunlai Education Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. China Chunlai Education Group insiders own about HK$1.3b worth of shares (which is 75% of the company). 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 China Chunlai Education Group Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest China Chunlai Education Group insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! 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 help with this, we've discovered 2 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in China Chunlai Education Group.

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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