Stock Analysis

Trade Alert: The Independent Director Of Summit Financial Group, Inc. (NASDAQ:SMMF), Jason Kitzmiller, Has Just Spent US$199k Buying 68% More Shares

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Potential Summit Financial Group, Inc. (NASDAQ:SMMF) shareholders may wish to note that the Independent Director, Jason Kitzmiller, recently bought US$199k worth of stock, paying US$21.75 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 68%, potentially signalling some real optimism.

Check out our latest analysis for Summit Financial Group

Summit Financial Group Insider Transactions Over The Last Year

In fact, the recent purchase by Jason Kitzmiller 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$21.96 per share to be enticing. 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. 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 Summit Financial Group share holders is that insiders were buying at near the current price.

In the last twelve months insiders purchased 23.75k shares for US$561k. But insiders sold 881.00 shares worth US$23k. Overall, Summit Financial Group insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

NasdaqGS:SMMF Insider Trading Volume March 19th 2023

Summit Financial Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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. We usually like to see fairly high levels of insider ownership. Summit Financial Group insiders own about US$36m worth of shares. That equates to 13% 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.

What Might The Insider Transactions At Summit Financial Group Tell Us?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Summit Financial Group insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Summit Financial Group. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Summit Financial Group.

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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