Anyone interested in China Beststudy Education Group (HKG:3978) should probably be aware that the Non-Executive Director, Wenhui Xu, recently divested HK$1.1m worth of shares in the company, at an average price of HK$2.94 each. However, the silver lining is that the sale only reduced their total holding by 3.9%, so we're hesitant to read anything much into it, on its own.

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

In fact, the recent sale by Wenhui Xu was the biggest sale of China Beststudy Education Group shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of HK$2.98, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 3.9%of Wenhui Xu's holding.

In the last twelve months insiders purchased 329.00k shares for HK$552k. But insiders sold 1.71m shares worth HK$3.5m. Wenhui Xu ditched 1.71m shares over the year. The average price per share was CN¥2.08. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. China Beststudy Education Group insiders own about HK$1.8b worth of shares (which is 80% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About China Beststudy Education Group Insiders?

The insider sales have outweighed the insider buying, at China Beststudy Education Group, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that China Beststudy Education Group is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. Be aware that China Beststudy Education Group is showing 3 warning signs in our investment analysis, and 1 of those is a bit unpleasant...

Of course China Beststudy Education Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.