Insider Buying: Shaoping Fu Just Spent CN¥11m On China Beststudy Education Group (HKG:3978) Shares

China Beststudy Education Group (HKG:3978) shareholders (or potential shareholders) will be happy to see that insider Shaoping Fu recently bought a whopping HK$11m worth of stock, at a price of HK$2.80. While that only increased their holding size by 3.9%, it is still a big swing by our standards.

View our latest analysis for China Beststudy Education Group

China Beststudy Education Group Insider Transactions Over The Last Year

Notably, that recent purchase by insider Shaoping Fu was not the only time they traded China Beststudy Education Group shares this year. They previously made a sale of -HK$27m worth of shares at a price of HK$3.47 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$2.75. So it may not tell us anything about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 7.76m shares worth HK$23m. On the other hand they divested 7.79m shares, for HK$27m. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does China Beststudy Education Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. China Beststudy Education Group insiders own 71% of the company, currently worth about HK$1.6b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The China Beststudy Education Group Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. On the other hand the transaction history, over the last year, isn't so positive. The recent buying by some insiders , along with high insider ownership, suggest that China Beststudy Education Group insiders are fairly aligned, and optimistic. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of China Beststudy Education Group.

But note: China Beststudy Education Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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