Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Hooker Furnishings Corporation (NASDAQ:HOFT), it sends a favourable message to the company's shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Hooker Furnishings

The Last 12 Months Of Insider Transactions At Hooker Furnishings

The insider Jeffrey Geygan made the biggest insider purchase in the last 12 months. That single transaction was for US$71k worth of shares at a price of US$12.99 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$11.50). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Happily, we note that in the last year insiders paid US$147k for 11.27k shares. On the other hand they divested 2.49k shares, for US$43k. In the last twelve months there was more buying than selling by Hooker Furnishings insiders. 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!

Hooker Furnishings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Hooker Furnishings Have Bought Stock Recently

Over the last quarter, Hooker Furnishings insiders have spent a meaningful amount on shares. Overall, five insiders shelled out US$122k for shares in the company -- and none sold. This makes one think the business has some good points.

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. Based on our data, Hooker Furnishings insiders have about 2.1% of the stock, worth approximately US$2.6m. I generally like to see higher levels of ownership.

So What Do The Hooker Furnishings Insider Transactions Indicate?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Hooker Furnishings insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Hooker Furnishings you should be aware of.

But note: Hooker Furnishings 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 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.