Stock Analysis

Have Hooker Furniture Corporation (NASDAQ:HOFT) Insiders Been Selling Their Stock?

  •  Updated
NasdaqGS:HOFT
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We'd be surprised if Hooker Furniture Corporation (NASDAQ:HOFT) shareholders haven't noticed that the Chairman & CEO, Paul Toms, recently sold US$467k worth of stock at US$31.17 per share. That sale was 11% of their holding, so it does make us raise an eyebrow.

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The Last 12 Months Of Insider Transactions At Hooker Furniture

Notably, that recent sale by Paul Toms is the biggest insider sale of Hooker Furniture shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$33.04). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 11%of Paul Toms's holding.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NasdaqGS:HOFT Insider Trading Volume January 13th 2021

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Does Hooker Furniture Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 2.8% of Hooker Furniture shares, worth about US$11m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Hooker Furniture Insiders?

An insider hasn't bought Hooker Furniture stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 2 warning signs for Hooker Furniture and we suggest you have a look.

But note: Hooker Furniture 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.

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