Stock Analysis

Shaoping Fu Just Bought 1.2% More Shares In China Beststudy Education Group (HKG:3978)

SEHK:3978
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Investors who take an interest in China Beststudy Education Group (HKG:3978) should definitely note that insider Shaoping Fu recently paid HK$2.98 per share to buy HK$2.9m worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 1.2%.

See our latest analysis for China Beststudy Education Group

The Last 12 Months Of Insider Transactions At China Beststudy Education Group

In fact, the recent purchase by insider Shaoping Fu was not their only trade of 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. That means that an insider was selling shares at around the current price of HK$2.96. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In the last twelve months insiders purchased 2.68m shares for HK$8.2m. But they sold 7.79m shares for HK$27m. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
SEHK:3978 Insider Trading Volume November 24th 2020

I will like China Beststudy Education Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of China Beststudy Education Group

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. China Beststudy Education Group insiders own about HK$1.6b worth of shares (which is 69% 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 Does This Data Suggest About China Beststudy Education Group Insiders?

The recent insider purchases are heartening. However, the longer term transactions are not so encouraging. The high levels of insider ownership, and the recent buying by some insiders suggests they are well aligned and optimistic. 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. You'd be interested to know, that we found 2 warning signs for China Beststudy Education Group and we suggest you have a look.

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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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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