HOVNANIAN ARA K 4

What Happened
Ara K. Hovnanian, a reported 10% owner and trustee of multiple family trusts, exercised/converted derivatives on May 27, 2026. The filing shows an acquisition of 5,000 shares via exercise at $56.75/share (aggregate $283,750). To satisfy exercise price/tax withholding, 3,494 shares were surrendered/disposed at $112.75/share (aggregate value $393,949). A related conversion of 5,000 shares (Class B to Class A) is also reported at $0. Net effect of the reported transactions is an increase of 1,506 shares (5,000 acquired − 3,494 surrendered).

Key Details

• Transaction date: 2026-05-27; Form 4 filed: 2026-05-29 (timely filing).
• Reported transactions:
  • M (exercise/conversion): +5,000 shares @ $56.75 (derivative exercise) — $283,750.
  • F (payment of exercise price/tax): −3,494 shares @ $112.75 — $393,949 (shares surrendered to cover taxes/exercise).
  • M (exercise/conversion): −5,000 shares @ $0 (conversion of Class B to Class A per footnote F1).
• Shares owned after the transaction: not provided in the data supplied.
• Notable footnotes: F1 notes Class B common stock is immediately convertible to Class A; multiple footnotes (F4–F15) indicate shares are held in family trusts for which Ara K. Hovnanian is trustee; F5 disclaims beneficial ownership except to extent of pecuniary interest.
• Transaction codes: M = option/derivative exercise or conversion; F = payment of exercise price/tax withholding (surrender of shares).

Context
This was an option/derivative exercise with partial share surrender to cover tax/exercise obligations — a common "cashless" element of exercises where some newly acquired shares are withheld/surrendered rather than paying cash. As a 10% owner and trustee for family trusts (not an employee trading as a routine open-market buy/sell), filings like this reflect trust/owner actions; they are factual disclosures and do not by themselves indicate a change in company outlook.