Potential China New Higher Education Group Limited (HKG: 2001) Shareholders may wish to note that the chairman, Xiaoxuan Li, recently bought HK $ 916,000 of shares, paying HK $ 3.52 for each share. While the purchase is not important, either as a percentage or as an absolute value, it can be seen as a good sign.
Check out our latest analysis for China New Higher Education Group
The last 12 months of insider trading at the new Chinese higher education group
In fact, Chairman Xiaoxuan Li’s recent purchase was not their only acquisition of China New Higher Education Group shares this year. Earlier this year, they paid HK $ 3.43 per share in a purchase of HK $ 948,000. This means that an insider was happy to buy shares around the current price of HK $ 3.52. This means that they have been optimistic about the company in the past, even though they may have changed their minds. We always love to see insider buys, but it should be noted if those buys were made at a price much lower than today’s share price as the discount to value may have been reduced with increasing price. In this case, we are happy to report that the insider bought shares at prices close to current prices. Xiaoxuan Li was the only individual insider to buy in the past year.
Xiaoxuan Li bought a total of 786.30,000 shares during the year at an average price of HK $ 3.43. Below you can see a visual representation of insider trading (by businesses and individuals) over the past 12 months. If you click on the chart you can see all of the individual trades including the stock price, individual and date!
There are always a lot of stocks that insiders buy. 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).
I like to look at how many shares insiders own in a company, to help inform my perspective on their alignment with insiders. We generally like to see fairly high levels of insider ownership. Insiders of the China New Higher Education Group own around HK $ 1.8 billion in shares (or 33% of the company). Most shareholders would be happy to see this type of insider ownership, as it suggests that management’s incentives are well aligned with those of other shareholders.
What might the insider trading of the new Chinese higher education group tell us?
It’s good to see the recent insider buy. And the analysis of last year’s transactions also gives us confidence. Besides the high number of insiders, this analysis suggests that insiders are quite optimistic about the China New Higher Education Group. It looks promising! So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. To this end, you should inquire about the 4 warning signs we spotted with China New Higher Education Group (including 1 which makes us a little uncomfortable).
Sure China New Higher Education Group May Not Be The Best Stock To Buy. So you might want to see this free collection of high quality companies.
For the purposes of this article, insiders are those persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in the mentioned stocks.
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