Have Insiders Been Buying China Chuanglian Education Financial Group Limited (HKG:2371) Shares?

We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in China Chuanglian Education Financial Group Limited (HKG:2371).

What Is Insider Selling?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, rules govern insider transactions, and certain disclosures are required.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

See our latest analysis for China Chuanglian Education Financial Group

China Chuanglian Education Financial Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Chairman Xing Lu for HK$1.2m worth of shares, at about HK$0.03 per share. We do like to see buying, but this purchase was made at well below the current price of HK$0.047. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

China Chuanglian Education Financial Group insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

China Chuanglian Education Financial 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.

Insiders at China Chuanglian Education Financial Group Have Bought Stock Recently

Over the last quarter, China Chuanglian Education Financial Group insiders have spent a meaningful amount on shares. We can see that Chairman Xing Lu paid HK$1.0m for shares in the company. No-one sold. That shows some optimism about the company's future.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. China Chuanglian Education Financial Group insiders own 53% of the company, currently worth about HK$140m 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.

So What Do The China Chuanglian Education Financial Group Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about China Chuanglian Education Financial Group. Nice! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - China Chuanglian Education Financial Group has 2 warning signs we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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