Haverty Furniture Cos Board Member Trades $94K In Company Stock

Disclosed in the latest SEC filing, a significant insider purchase on May 7, involves Bolch Natalie Morhous, Board Member at Haverty Furniture Cos HVT.

What Happened: In a Form 4 filing on Tuesday with the U.S. Securities and Exchange Commission, it was disclosed that Morhous bought 3,222 shares of Haverty Furniture Cos, amounting to a total of $94,984.

As of Wednesday morning, Haverty Furniture Cos shares are down by 0.0%, currently priced at $28.7.

Get to Know Haverty Furniture Cos Better

Haverty Furniture Companies Inc is a specialty retailer of residential furniture and accessories. It provides various products such as Sofa Tables, Sleepers, End Tables, Cocktail Tables, Accent Pieces, Display Cabinets, Wall Decor, floral and Tress, and other related products. The company operates primarily in the Southern and Midwestern U.S. All its activities are encompassed in its Merchandise division. The company derives the majority of its revenue from its upholstery products and, secondarily, from bedroom furniture.

Financial Milestones: Haverty Furniture Cos's Journey

Revenue Challenges: Haverty Furniture Cos's revenue growth over 3 months faced difficulties. As of 31 December, 2023, the company experienced a decline of approximately -24.88%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.

Exploring Profitability:

• Gross Margin: The company excels with a remarkable gross margin of 62.36%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Haverty Furniture Cos's EPS is below the industry average. The company faced challenges with a current EPS of 0.93. This suggests a potential decline in earnings.

Debt Management: Haverty Furniture Cos's debt-to-equity ratio is below the industry average. With a ratio of 0.71, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The P/E ratio of 10.4 is lower than the industry average, implying a discounted valuation for Haverty Furniture Cos's stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.59, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Haverty Furniture Cos's EV/EBITDA ratio, lower than industry averages at 7.7, indicates attractively priced shares.

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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The Importance of Insider Transactions

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

A Deep Dive into Insider Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Haverty Furniture Cos's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.