Even if it's not a huge purchase, we think it was good to see that Allan Hemphill, the Chairman of the Board of Summit State Bank (NASDAQ:SSBI) recently shelled out US$100k to buy stock, at US$12.99 per share. That purchase might not be huge but it did increase their holding by 20%.

See our latest analysis for Summit State Bank

The Last 12 Months Of Insider Transactions At Summit State Bank

In fact, the recent purchase by Allan Hemphill was the biggest purchase of Summit State Bank shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$12.66). 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months insiders purchased 21.91k shares for US$275k. But insiders sold 5000 shares worth US$62k. Overall, Summit State Bank insiders were net buyers last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. 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.

Insider Ownership of Summit State Bank

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Summit State Bank insiders own about US$14m worth of shares. That equates to 18% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Summit State Bank Tell Us?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Summit State Bank we think they are probably pretty confident of a bright future. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

But note: Summit State Bank may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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