Hooker Furnishings Insiders Lose Out As Stock Sinks To US$9.80

Insiders who bought US$122.0k worth of Hooker Furnishings Corporation's (NASDAQ:HOFT) stock at an average buy price of US$12.96 over the last year may be disappointed by the recent 13% decrease in the stock. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$92.3k, which is not great.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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Hooker Furnishings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Jeffrey Geygan for US$71k worth of shares, at about US$12.99 per share. That means that an insider was happy to buy shares at above the current price of US$9.80. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Over the last year, we can see that insiders have bought 9.42k shares worth US$122k. But they sold 2.49k shares for US$43k. In total, Hooker Furnishings insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Hooker Furnishings

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests Hooker Furnishings insiders own 2.9% of the company, worth about US$3.3m. I generally like to see higher levels of ownership.

So What Do The Hooker Furnishings Insider Transactions Indicate?

The fact that there have been no Hooker Furnishings insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Hooker Furnishings insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hooker Furnishings. In terms of investment risks, we've identified 1 warning sign with Hooker Furnishings and understanding it should be part of your investment process.

But note: Hooker Furnishings 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 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.