Independent Director Gary Hinkle Just Bought 1.2% More Shares In Summit Financial Group, Inc. (NASDAQ:SMMF)

Investors who take an interest in Summit Financial Group, Inc. (NASDAQ:SMMF) should definitely note that the Independent Director, Gary Hinkle, recently paid US$21.17 per share to buy US$105k worth of the stock. Although the purchase only increased their holding by 1.2%, it is still a solid purchase in our view.

See our latest analysis for Summit Financial Group

Summit Financial Group Insider Transactions Over The Last Year

Notably, that recent purchase by Independent Director Gary Hinkle was not the only time they bought Summit Financial Group shares this year. They previously made an even bigger purchase of US$141k worth of shares at a price of US$19.95 per share. That means that an insider was happy to buy shares at around the current price of US$22.19. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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. Happily, the Summit Financial Group insiders decided to buy shares at close to current prices.

Over the last year, we can see that insiders have bought 30.23k shares worth US$625k. But insiders sold 15.55k shares worth US$420k. Overall, Summit Financial Group insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Summit Financial Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Summit Financial Group insiders own about US$39m worth of shares. That equates to 14% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Summit Financial Group Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Summit Financial Group shares, given these transactions (along with notable insider ownership of the company). While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 3 warning signs with Summit Financial Group and understanding these should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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