Pleasing Signs As A Number Of Insiders Buy Summit State Bank Stock \
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Summit State Bank (NASDAQ:SSBI), it sends a favourable message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Summit State Bank
The Last 12 Months Of Insider Transactions At Summit State Bank
Over the last year, we can see that the biggest insider purchase was by insider Dawn Ross for US$51k worth of shares, at about US$15.65 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$15.26). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months Summit State Bank insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Summit State Bank is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Summit State Bank Insiders Bought Stock Recently
It's good to see that Summit State Bank insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought US$134k worth of shares. That shows some optimism about the company's future.
Insider Ownership Of Summit State Bank
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 22% of Summit State Bank shares, worth about US$23m. 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 State Bank Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Insiders likely see value in Summit State Bank shares, given these transactions (along with notable insider ownership of the company). I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
Of course Summit State Bank 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
