Trade Alert: Shaoping Fu At China Beststudy Education Group (HKG:3978), Has Just Spent CN¥3.6m Buying 1.3% More Shares

Investors who take an interest in China Beststudy Education Group (HKG:3978) should definitely note that insider Shaoping Fu recently paid HK$2.96 per share to buy HK$3.6m 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 1.3%.

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. Earlier in the year, they sold shares at a price ofHK$3.47 per share in a -HK$27m transaction. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of HK$2.85. So it may not shed much light on insider confidence at current levels.

In the last twelve months insiders purchased 3.91m shares for HK$12m. 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. China Beststudy Education Group insiders own 70% of the company, currently worth about HK$1.6b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At China Beststudy Education Group Tell Us?

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 high levels of insider ownership, and the recent buying by some insiders suggests they are well aligned and optimistic. 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. While conducting our analysis, we found that China Beststudy Education Group has 1 warning sign and it would be unwise to ignore it.

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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