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HOVNANIAN ENTERPRISES INC·4

May 27, 4:30 PM ET

HOVNANIAN ARA K 4

Research Summary

AI-generated summary

Updated

Hovnanian (HOV) 10% Owner Ara K. Hovnanian Exercises Derivatives

What Happened

  • Ara K. Hovnanian (reported as a 10% owner) completed derivative transactions on May 22, 2026. He exercised/converted derivatives that resulted in the acquisition of 5,000 shares at $56.75 each (cost $283,750). To satisfy tax withholding, 3,603 shares were surrendered/disposed at a reported value of $105.23 per share (total value $379,144). The filing also reports a conversion/exercise entry of 5,000 shares at $0.00 (see footnote on Class B → Class A conversion).

Key Details

  • Transaction date: 2026-05-22; Form 4 filed: 2026-05-27 (filed five days after the transaction date).
  • Acquired: 5,000 shares via derivative exercise at $56.75 (total $283,750).
  • Disposed for tax withholding: 3,603 shares at $105.23 (value $379,144).
  • Conversion/other derivative entry: 5,000 shares at $0.00 (reported as an M-coded exercise/conversion).
  • Shares owned after transaction: Not specified in the excerpt of the filing.
  • Footnotes: Class B common stock is immediately convertible to Class A (F1). Many reported holdings are held in family trusts/2012 LLC interests and the reporting person is a trustee (F5, F10–F16). The filer disclaims beneficial ownership except to the extent of a pecuniary interest (F6).
  • Transaction codes explained: M = exercise/conversion of derivative; F = payment of exercise price or tax withholding (shares surrendered to cover taxes).

Context

  • This appears to be a cashless-style outcome: an exercise/conversion occurred and shares were surrendered to cover tax withholding rather than a cash sale. That is common when insiders exercise options or convert restricted shares.
  • As a 10% owner (not necessarily an executive), these transactions reflect trust-related and conversion mechanics; filings show trust holdings and trustee status rather than a straightforward open-market buy or sell.
  • Note on timeliness: Form 4 was filed five days after the May 22 transactions; insiders are generally required to file within two business days, so this filing may be late according to Section 16 timing rules.