Don't Ignore The Fact That This Insider Just Sold Some Shares In Haverty Furniture Companies, Inc. (NYSE:HVT)

By
Simply Wall St
Published
November 26, 2020
NYSE:HVT

We'd be surprised if Haverty Furniture Companies, Inc. (NYSE:HVT) shareholders haven't noticed that the Chairman, Clarence Smith, recently sold US$286k worth of stock at US$28.04 per share. That sale was 15% of their holding, so it does make us raise an eyebrow.

View our latest analysis for Haverty Furniture Companies

The Last 12 Months Of Insider Transactions At Haverty Furniture Companies

Notably, that recent sale by Clarence Smith is the biggest insider sale of Haverty Furniture Companies shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$28.01. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

In the last twelve months insiders purchased 5.00k shares for US$75k. On the other hand they divested 16.10k shares, for US$414k. In total, Haverty Furniture Companies insiders sold more than they bought over the last year. The average sell price was around US$25.71. It's not particularly great to see insiders were selling shares at below recent prices. But we wouldn't put too much weight on the insider selling. 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!

insider-trading-volume
NYSE:HVT Insider Trading Volume November 26th 2020

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Haverty Furniture Companies insiders own about US$25m worth of shares. That equates to 4.9% of the company. 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 Haverty Furniture Companies Insiders?

An insider sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Haverty Furniture Companies makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 5 warning signs (1 shouldn't be ignored!) that you ought to be aware of before buying any shares in Haverty Furniture Companies.

Of course Haverty Furniture Companies may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

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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. 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.
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