Non-Independent Non-Executive Director Of Haverty Furniture Companies Sold 100% Of Their Shares

We'd be surprised if Haverty Furniture Companies, Inc. (NYSE:HVT) shareholders haven't noticed that the Non-Independent Non-Executive Director, J. Haverty, recently sold US$101k worth of stock at US$22.42 per share. In particular, we note that the sale equated to a 100% reduction in their position size, which doesn't exactly instill confidence.

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The Last 12 Months Of Insider Transactions At Haverty Furniture Companies

Notably, that recent sale by Non-Independent Non-Executive Director J. Haverty was not the only time they sold Haverty Furniture Companies shares this year. Earlier in the year, they fetched US$23.10 per share in a -US$576k sale. That means that an insider was selling shares at below the current price (US$23.18). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 85% of J. Haverty's stake.

J. Haverty ditched 57.75k shares over the year. The average price per share was US$19.35. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Haverty Furniture Companies

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Does Haverty Furniture Companies Boast High Insider Ownership?

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. Insiders own 8.1% of Haverty Furniture Companies shares, worth about US$31m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Haverty Furniture Companies Insiders?

An insider sold Haverty Furniture Companies shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Haverty Furniture Companies. In terms of investment risks, we've identified 2 warning signs with Haverty Furniture Companies and understanding these should be part of your investment process.

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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.