As the market cap of Virscend Education Company Limited (HKG: 1565) drops to HK $ 1.5 billion, insiders may question their decision to buy earlier this year

The recent 14% drop in prices in Virscend Education Company Limited (HKG: 1565) The shares may have disappointed insiders who bought CN 10 million shares at an average price of CN ¥ 1.57 in the past 12 months. Insiders buy with the expectation that their investments will increase in value over a period of time. However, recent losses made their above investment worth CN 3.0 million, which is not ideal.

While we don’t think shareholders should just follow insider trading, logic dictates that you pay attention to whether insiders are buying or selling stocks.

Check out our latest review for Virscend Education

The Last 12 Months of Insider Trading at Virscend Education

Over the past year, we can see that the biggest insider buy was made by CEO and Executive Director Yude Yan for HK $ 6.2million of shares, at around HK $ 1.56 per share. . So it is clear that an insider wanted to buy, even at a price higher than the current share price (i.e. HK $ 0.47). It is very possible that they regret the purchase, but it is more likely that they are optimistic about the business. In our opinion, the price that an insider pays for the shares is very important. Typically, we are more bullish on a stock when an insider has bought a stock at a higher price than the current price, as this suggests that he or she viewed the stock as good value, even at a low price. higher price. Yude Yan was the only individual insider to buy in the past year.

Yude Yan bought 6.39 million shares during the year. The average price per share was HK $ 1.57. Below you can see a visual representation of insider trading (by businesses and individuals) over the past 12 months. By clicking on the graph below, you can see the precise detail of each insider trade!

SEHK: 1,565 Insider Trading Volume November 22, 2021

Virscend Education isn’t the only one buying stocks. So take a look at this free list of growing companies with insider buying.

Insider Property of Virscend Education

Many investors like to check how well a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will have an incentive to build the business for the long term. Virscend Education insiders own around HK $ 743 million in shares (or 51% of the company). This type of large insider ownership usually increases the chances that the business will be run in the best interests of all shareholders.

So what do Virscend Education’s insider trading indicate?

We certainly don’t mind the fact that there haven’t been any Virscend Education insider transactions recently. But insiders have shown more appetite for the stock, over the past year. With strong insider ownership and encouraging transactions, it looks like insiders at Virscend Education believe the company has merit. In addition to knowing what insider trading is going on, it helps to identify the risks Virscend Education faces. When we did our research we found 5 warning signs for Virscend Education (1 is concerning!) Which we believe deserves your full attention.

If you would rather consult with another company – one with potentially superior finances – then don’t miss this free list of interesting companies, which have a HIGH return on equity and low leverage.

For the purposes of this article, insiders are the 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 documents. Simply Wall St has no position in any of the stocks mentioned.

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