Director Gary Hinkle Buys 14,201 Shares of Summit Financial Group Inc (SMMF)
On September 14, 2023, Director Gary Hinkle of Summit Financial Group Inc (NASDAQ:SMMF) purchased 14,201 shares of the company's stock, marking a significant insider buy. This article will delve into the details of this transaction, the insider's history, and the potential implications for the stock's future performance.
Who is Gary Hinkle?
Gary Hinkle is a Director at Summit Financial Group Inc. He has been with the company for several years, contributing to its growth and development. His recent purchase of 14,201 shares indicates a strong belief in the company's future prospects.
About Summit Financial Group Inc
Summit Financial Group Inc is a financial holding company that provides community banking and insurance services. The company operates through two segments, community banking, and insurance & financial services. Its community banking segment consists of full-service banks which offer a range of banking services, including demand, savings, and time deposits; commercial, commercial real estate, construction and development, residential real estate, and consumer loans; mortgage warehouse lines of credit; letters of credit; and cash management services.
Insider Buying Analysis
Over the past year, the insider has purchased a total of 15,651 shares and sold none. This recent purchase of 14,201 shares is a significant addition to the insider's holdings, indicating a strong confidence in the company's future performance.
The insider transaction history for Summit Financial Group Inc shows a total of 17 insider buys over the past year, with only 1 insider sell. This trend suggests a positive sentiment among the company's insiders, which could be a bullish signal for investors.
Stock Price and Valuation
On the day of the insider's recent buy, shares of Summit Financial Group Inc were trading at $24.17, giving the company a market cap of $352.132 million. The price-earnings ratio is 6.17, lower than both the industry median of 8.29 and the company's historical median price-earnings ratio. This suggests that the stock may be undervalued.
According to the GuruFocus Value, which is $32.29, Summit Financial Group Inc has a price-to-GF-Value ratio of 0.75. This indicates that the stock is modestly undervalued. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
Conclusion
In conclusion, the insider's recent purchase of 14,201 shares of Summit Financial Group Inc is a positive signal for the company. The stock appears to be modestly undervalued, and the insider's buying trend suggests a bullish outlook. Investors should keep a close eye on this stock for potential investment opportunities.
This article first appeared on GuruFocus.
