CEO & Executive Director of Virscend Education Yude Yan Buys More Stock

Even if it's not a huge purchase, we think it was good to see that Yude Yan, the CEO & Executive Director of Virscend Education Company Limited (HKG:1565) recently shelled out HK$676k to buy stock, at HK$0.20 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

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Virscend Education Insider Transactions Over The Last Year

In fact, the recent purchase by Yude Yan was the biggest purchase of Virscend Education shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.20). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Yude Yan was the only individual insider to buy shares in the last twelve months.

Yude Yan bought a total of 3.47m shares over the year at an average price of HK$0.20. You can see the insider transactions (by companies and 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!

View our latest analysis for Virscend Education

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Virscend Education Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Virscend Education insiders own 51% of the company, worth about HK$310m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Virscend Education Tell Us?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Virscend Education. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Virscend Education. At Simply Wall St, we've found that Virscend Education has 4 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.

But note: Virscend Education 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.