Whilst it may not be a huge deal, we thought it was good to see that the China Maple Leaf Educational Systems Limited (HKG:1317) Founder, Shu Liang Jen, recently bought HK$707k worth of stock, for HK$0.25 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

See our latest analysis for China Maple Leaf Educational Systems

China Maple Leaf Educational Systems Insider Transactions Over The Last Year

Notably, that recent purchase by Founder Shu Liang Jen was not the only time they bought China Maple Leaf Educational Systems shares this year. Earlier in the year, they paid HK$0.25 per share in a HK$1.2m purchase. We do like to see buying, but this purchase was made at well below the current price of HK$0.30. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Shu Liang Jen purchased 9.31m shares over the year. The average price per share was HK$0.25. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of China Maple Leaf Educational Systems

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. China Maple Leaf Educational Systems insiders own 51% of the company, currently worth about HK$468m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The China Maple Leaf Educational Systems Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about China Maple Leaf Educational Systems. Nice! 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. To help with this, we've discovered 5 warning signs (3 make us uncomfortable!) that you ought to be aware of before buying any shares in China Maple Leaf Educational Systems.

But note: China Maple Leaf Educational Systems 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 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.