14% Of This China East Education Holdings Insider's Holdings Were Sold

From what we can see, insiders were net sellers in China East Education Holdings Limited's (HKG:667 ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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China East Education Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Executive Deputy Chairman, Guoqing Xiao, for HK$339m worth of shares, at about HK$5.65 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$4.03. So it is hard to draw any strong conclusion from it. Guoqing Xiao was the only individual insider to sell over the last year.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for China East Education Holdings

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Insider Ownership Of China East Education Holdings

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. China East Education Holdings insiders own 71% of the company, currently worth about HK$6.3b 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 Does This Data Suggest About China East Education Holdings Insiders?

The fact that there have been no China East Education Holdings insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the China East Education Holdings insiders selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of China East Education Holdings.

But note: China East Education Holdings 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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