Have Insiders Been Buying China Maple Leaf Educational Systems Limited (HKG:1317) Shares This Year?
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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 Maple Leaf Educational Systems Limited (HKG:1317).
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 on the market. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
Check out our latest analysis for China Maple Leaf Educational Systems
China Maple Leaf Educational Systems Insider Transactions Over The Last Year
Founder Shu Liang Jen made the biggest insider purchase in the last 12 months. That single transaction was for HK$19m worth of shares at a price of HK$3.78 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$3.30). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Happily, we note that in the last year insiders paid HK$108m for 26.1m shares. But insiders sold 100k shares worth HK$700k. In total, China Maple Leaf Educational Systems insiders bought more than they sold over the last year. The average buy price was around HK$4.16. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
China Maple Leaf Educational Systems 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 Maple Leaf Educational Systems Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at China Maple Leaf Educational Systems. Shu Liang Jen spent CN¥24m on stock, and there wasn't any selling. This makes one think the business has some good points.
Does China Maple Leaf Educational Systems 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. It's great to see that China Maple Leaf Educational Systems insiders own 51% of the company, worth about HK$5.0b. 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 Maple Leaf Educational Systems Insider Transactions Indicate?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about China Maple Leaf Educational Systems. Nice! Of course, the future is what matters most. So if you are interested in China Maple Leaf Educational Systems, you should check out this free report on analyst forecasts for the company.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
