Yahoo Finance 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, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Summit State Bank
Summit State Bank Insider Transactions Over The Last Year
The Independent Director Jeffery Allen made the biggest insider purchase in the last 12 months. That single transaction was for US$88k worth of shares at a price of US$14.17 each. That means that an insider was happy to buy shares at above the current price of US$9.80. 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 insiders purchased 30.24k shares for US$338k. But they sold 940.00 shares for US$11k. In the last twelve months there was more buying than selling by Summit State Bank insiders. Their average price was about US$11.19. These transactions suggest that insiders have considered the current price attractive. 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!
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).
Summit State Bank Insiders Bought Stock Recently
There has been significantly more insider buying, than selling, at Summit State Bank, over the last three months. In total, six insiders bought US$80k worth of shares in that time. But we did see Independent Director Nicholas Rado sell shares worth US$5.5k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.
Insider Ownership Of Summit State Bank
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. Summit State Bank insiders own about US$15m worth of shares. That equates to 23% 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 Does This Data Suggest About Summit State Bank Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Summit State Bank shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Summit State Bank. At Simply Wall St, we found 1 warning sign for Summit State Bank that deserve your attention before buying any shares.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.
