The recent drop of 8.5% Hope Education Group Co., Ltd. (HKG:1765) The shares could be a blow to insiders who bought 25 million Canadian yen worth of shares at an average purchase price of 2.28 domestic yen over the past 12 months. This is not good because insiders invest based on expectations that their money will appreciate over time. However, following recent losses, their initial investment is now worth just 8.3 million Canadian yen.
While insider trading isn’t the most important thing when it comes to long-term investing, we think it makes perfect sense to keep tabs on what insiders are doing.
See our latest analysis for Hope Education Group
The last 12 months of insider trading at Hope Education Group
Over the past year, we can see that the biggest insider buy was made by Executive Director Huiwu Wang for HK$4.7 million worth of shares, or about HK$2.37 per share. This means that an insider was happy to buy shares above the current price of HK$0.75. Their perspective may have changed since then, but it at least shows that they were feeling optimistic at the time. For us, it is very important to consider the price that insiders pay for the shares. Generally speaking, it catches our attention when an insider has bought stocks at prices higher than the current price, as it suggests that they thought the stock was worth buying, even at a higher price. Huiwu Wang was the only individual insider to buy shares in the past twelve months.
Huiwu Wang bought a total of 11.12 million shares during the year at an average price of HK$2.28. You can see insider trading (by companies and individuals) over the past year illustrated in the table below. If you click on the chart, you can see all individual trades including stock price, individual and date!
There are always plenty of stocks that insiders are buying. So if it suits your style you can check each stock one by one or you can take a look at this free list of companies. (Hint: insiders bought them).
For an ordinary shareholder, it is worth checking how many shares are held by company insiders. I think it’s a good sign if insiders have a significant number of shares in the company. According to our data, insiders hold HK$13 million worth of Hope Education Group shares, or about 0.2% of the company. But they may have an indirect interest through a corporate structure that we have not noted. We prefer to see high levels of insider ownership.
So what do Hope Education Group’s insider trading indicate?
The fact that there have been no Hope Education Group insider trades recently certainly doesn’t bother us. However, our analysis of transactions over the past year is encouraging. Insiders hold shares in Hope Education Group and we see no evidence to suggest they are worried about the future. While we like to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making any investment decisions. You would be interested to know that we have found 3 warning signs for Hope Education Group and we suggest you take a look.
But note: Hope Education Group may not be the best stock to buy. So take a look at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.