Insider Buying: The Summit Financial Group, Inc. (NASDAQ:SMMF) Independent Director Just Bought US$105k Worth Of Shares
Investors who take an interest in Summit Financial Group, Inc. (NASDAQ:SMMF) should definitely note that the Independent Director, Gary Hinkle, recently paid US$25.95 per share to buy US$105k worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.
See our latest analysis for Summit Financial Group
The Last 12 Months Of Insider Transactions At Summit Financial Group
In fact, the recent purchase by Gary Hinkle was the biggest purchase of Summit Financial Group shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$26.88 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Summit Financial Group share holders is that insiders were buying at near the current price.
In the last twelve months insiders purchased 7.89k shares for US$205k. But insiders sold 881.00 shares worth US$23k. In total, Summit Financial Group insiders bought more than they sold 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!
Summit Financial Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Summit Financial Group Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 13% of Summit Financial Group shares, worth about US$43m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Summit Financial Group Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Summit Financial Group we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Summit Financial Group. For example - Summit Financial Group has 1 warning sign we think you should be aware of.
Of course Summit Financial Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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, but not derivative transactions.
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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.
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