We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in Haverty Furniture Companies, Inc. ( NYSE:HVT ).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. 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 it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
The Last 12 Months Of Insider Transactions At Haverty Furniture Companies
Over the last year, we can see that the biggest insider sale was by the Chairman, Clarence Smith, for US$240k worth of shares, at about US$24.01 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$18.07. So it may not tell us anything about how insiders feel about the current share price.
Over the last year we saw more insider selling of Haverty Furniture Companies shares, than buying. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Haverty Furniture Companies better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Haverty Furniture Companies Insiders Are Selling The Stock
We've seen more insider selling than insider buying at Haverty Furniture Companies recently. In total, insiders sold US$318k worth of shares in that time. Meanwhile Independent Director G. Hough bought US$54k worth. We don't view these transactions as a positive sign.
Does Haverty Furniture Companies Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Haverty Furniture Companies insiders own 4.1% of the company, worth about US$15m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Haverty Furniture Companies Tell Us?
The insider sales have outweighed the insider buying, at Haverty Furniture Companies, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But since Haverty Furniture Companies is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for 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.
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