While it’s been a great week for Haverty Furniture Companies, Inc. (NYSE:HVT) shareholders after stock gained 10%, not so much for insiders who sold stock over the past year. The return on their investment would have been much higher had they held on to their stock.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Haverty Furniture Companies Insider Transactions Over The Last Year

The Non-Independent Non-Executive Director, J. Haverty, made the biggest insider sale in the last 12 months. That single transaction was for US$66k worth of shares at a price of US$20.49 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$22.40. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 42% of J. Haverty's stake. J. Haverty was the only individual insider to sell over the last year.

J. Haverty sold a total of 13.22k shares over the year at an average price of US$7.34. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Haverty Furniture Companies

I will like Haverty Furniture Companies better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Haverty Furniture Companies Insiders Are Selling The Stock

The last quarter saw substantial insider selling of Haverty Furniture Companies shares. In total, Non-Independent Non-Executive Director J. Haverty dumped US$97k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Haverty Furniture Companies insiders own 8.7% of the company, worth about US$31m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

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

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. 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. You'd be interested to know, that we found 3 warning signs for Haverty Furniture Companies and we suggest you have a look.

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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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.