Hooker Furniture Corporation (HOFT) Deserves To Be On Your Radar Today

Hooker Furniture Corporation (NASDAQ:HOFT) is one of the stocks that are taking the center stage today as the company shares are trading 7.1% or 1.48 points lower from last closing price of $20.85, reaching $19.37 at last check. So what’s going on with HOFT shares anyway? The price has dropped in 2 of the last 5 days and is down -29.99% over the past week. It will be exciting to see whether the stock manages to continue decreasing or take a minor break for the next few days. The move came on weak volume too with far less shares changing hands than in a normal session. Trading activity as of this writing weakened by -51,106 shares, and in total 139294 shares valued at $2.698 million were seen changing hands compared with 190400 shares valued at $3.97 million recorded at the previous session. You should take into consideration that a falling volume on lower prices shows the bearish trend but this is an early indication which means that the HOFT stock is near its bottom.

Hooker Furniture Corporation (HOFT) shares have notched a 3-month decline of about -29.99%, but has still tumbled -20.84% year to date. By comparison, the stock sank -56.7% over the past 12 months, while it slipped -27.07% over the 1 month. The company’s market cap is around $247.49M, with its short interest ratio standing at 1.86%.

In the current trading session for HOFT, the stock witnessed two major price actions, it rose to a high of $20.71 and was down as much as $19.17 at one point. The high recorded is very low when compared to their 52-week high which is $20.25. The 52-week high is now at -61.18 distance from current price. Their recent low of $49.85 represents a -4.44% recovery. This data is quite important for investors who look to benefit from the recent rise of the company’s stock. The price target currently for HOFT is $43, this is below the recent high that the stock attained. Taking a look at the overall sentimental views of financial analysts, the trading pattern of this stock recently is very clear.

The stock of Hooker Furniture Corporation earned $3.38 per share in the trailing 12 months and has a P/E ratio of 5.73. You can compare it with that of similar companies in its industry to get a sense of whether the stock you’re looking to purchase is overvalued or undervalued. Its current price to earnings ratio is lower than the ones recorded by the industry which is 23.79 and lower compared to the sector’s average of 19.34. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. HOFT also has P/S multiple of 0.34. This is smaller versus the 12 month P/S ratios of other companies in the same indutry. The peer average price to sales ratio is 1.97x.

The company recorded an interesting insider purchase transaction by the CEO on Apr 25, 2019. A Securities and Exchanges Commission filings show that Paul B Toms Jr bought a total of 1,000 HOFT shares that day for a sum of around $27,980. The filings show that the insider stake has now grown to 76,856 shares, currently worth $1,488,701. Hooker Furniture Corporation (HOFT) insiders have acquired 25,859 shares in the stock within the past three months. The total insider sales reported to the SEC in that time frame amounted to 1,554 shares. In total, individual insiders traded 27,413 shares in the business, which makes up 76.445% of 35,860 shares that were traded over a year. In the past 12 months, insiders have purchased 26,859 shares while the seller parted with 9,001 shares.

HOFT‘s last price was down -36.4% as compared to the average trading price of 50 days recorded at $30.46 while enlarging the period to 200 trading days, the average closing price was $28.36. At present, there are 11.87 million in the total number of common shares owned by the public and among those 11.46 million shares have been available to trade. The percentage of shares being held by the company management was 1.8% while institutions stake was 87.7%. The company has generated positive returns on equity over the last 12 months (16.1%). It managed to keep its gross profit margin at 21.5% over the past 12 months.

When assessing the full upside of the HOFT stock, there is another set of technicals that should be looked into and considered. Its -28.03% decline from moving average of $26.91 has brought about a negative sentiment when calculated over the last 20 days. The market has allocated a beta of 0.62 to the stock. With the beta been less than one, this implies that the company shares are theoretically less volatile than the market, something that the traders definitely are keeping an eye on.

Most of the analysts surveyed by Thomson/First Call think quite highly of Hooker Furniture Corporation — 1 analysts rate the stock as a buy with another 0 rating it strong buy. There are 0 analysts who maintain a hold rating for the stock, with 0 giving it a sell rating. Analysts arrived at a 12-month price target of $43 on shares of Hooker Furniture Corporation (NASDAQ:HOFT), which corresponds to 121.88% upside potential than its current market price of $19.37 and implies potential despite the recent drop in the price. However, their current target price has fallen from $43 a month ago and is down handily from the consensus target of $43 a quarter ago.

In the last five years, the EPS of the company has been roughly 35.7%. Though the percentage looks encouraging, extra tailwinds are emerging as looking out over a next 5-year period, with analysts estimating that their earnings will increase annually by 17%. The revenue of the company has risen at an average annualized rate of about 24.5 over the last five years. The company recently recorded an increase of 14.2%, but this figure is rather attractive.

Let’s briefly check the hedge fund interest towards HOFT stock. Marshall Wace LLP trimmed position in the company after it dumped -394.1% or -13,911 shares of its common stock. The hedge fund now owns 40,913 shares worth $792,485, SEC documents show. Zebra Capital Management LLC shored up assets in the stock as 4839.33 shares have been purchased, increasing its stake by 50% to 7,259 shares which are currently valued at $140,607. In addition, Hotchkis & Wiley Capital Management LLC recently reported that it now owns 93,303 shares making a total of $1,807,279 based on the recent price. This refelects a change of -12.8% in their ownership.