Who Has Been Buying Hooker Furniture Corporation (NASDAQ:HOFT) Shares?

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It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Hooker Furniture Corporation (NASDAQ:HOFT), you may well want to know whether insiders have been buying or selling.

Do Insider Transactions Matter?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.

Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.

Check out our latest analysis for Hooker Furniture

Hooker Furniture Insider Transactions Over The Last Year

Lead Director Henry Williamson made the biggest insider purchase in the last 12 months. That single transaction was for US$225k worth of shares at a price of US$28.13 each. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being US$20.62). It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. To us, it’s very important to consider the price insiders pay for shares is very important. 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 20500 shares worth US$539k. While Hooker Furniture insiders bought shares last year, they didn’t sell. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

NasdaqGS:HOFT Recent Insider Trading, July 1st 2019
NasdaqGS:HOFT Recent Insider Trading, July 1st 2019

Insiders at Hooker Furniture Have Bought Stock Recently

Over the last quarter, Hooker Furniture insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$506k worth of shares. This is a positive in our book as it implies some confidence.

Does Hooker Furniture Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Hooker Furniture insiders own 2.6% of the company, worth about US$6.4m. Whilst better than nothing, we’re not overly impressed by these holdings.

So What Do The Hooker Furniture Insider Transactions Indicate?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Hooker Furniture stock. Of course, the future is what matters most. So if you are interested in Hooker Furniture, you should check out this free report on analyst forecasts for the company.

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 aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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. Thank you for reading.