Whilst it may not be a huge deal, we thought it was good to see that the Neusoft Education Technology Co. Limited (HKG:9616) Non-Executive Chairman of the Board, Jiren Liu, recently bought HK$488k worth of stock, for HK$2.26 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

The Last 12 Months Of Insider Transactions At Neusoft Education Technology

Notably, that recent purchase by Jiren Liu is the biggest insider purchase of Neusoft Education Technology shares that we've seen in the last year. That implies that an insider found the current price of HK$2.31 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Neusoft Education Technology share holders is that an insider was buying at near the current price. Jiren Liu was the only individual insider to buy during the last year.

Jiren Liu purchased 1.08m shares over the year. The average price per share was HK$2.60. 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!

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

Does Neusoft Education Technology 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. Neusoft Education Technology insiders own about HK$378m worth of shares. That equates to 25% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Neusoft Education Technology Tell Us?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Neusoft Education Technology insiders are well aligned, and quite possibly think the share price is too low. Nice! 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. At Simply Wall St, we found 2 warning signs for Neusoft Education Technology that deserve your attention before buying any shares.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.