O'Connor Brad G 4

What Happened

• Brad G. O'Connor, Chief Financial Officer of Hovnanian Enterprises (HOV), exercised stock options on May 27, 2026 to acquire 3,000 shares (2,000 + 1,000) at an exercise price of $42.50 per share (total exercise cost $127,500).
• To satisfy tax-withholding/payment obligations, 1,109 shares were surrendered/withheld (370 shares and 739 shares) valued at $115.09 per share, totaling $127,640. The filing also shows two derivative disposition entries of 1,000 and 2,000 shares at $0.00 (reporting treatment related to the exercised derivatives).
• Net result: acquisition of 3,000 shares less 1,109 withheld = 1,891 net shares added to O'Connor's holdings.

Key Details

• Transaction date(s): May 27, 2026; Form 4 filed May 29, 2026 (timely within reporting window).
• Exercise details: 2,000 shares @ $42.50 = $85,000; 1,000 shares @ $42.50 = $42,500.
• Tax/withholding disposals: 370 shares @ $115.09 = $42,585; 739 shares @ $115.09 = $85,055.
• Net shares retained after the transactions (based on reported entries): 1,891 shares.
• Footnotes: F1 — figures adjusted for a prior 1-for-25 reverse split; F2 — the option exercised was fully vested; F3 — N/A.
• Filing status: Reported on May 29 for transactions on May 27 — appears timely (not marked late).

Context

• This was an option exercise (transaction code M) with shares withheld to cover tax liabilities (transaction code F). That is a common way insiders pay exercise-related taxes and does not necessarily indicate a market view.
• The presence of derivative entries showing $0.00 consideration typically reflects the internal conversion/cancellation of option instruments as part of the exercise; the economic effect shown in this filing is the acquisition of shares and the withholding of shares for taxes.
• For retail investors: exercises increase an insider’s exposure to the stock (here a net addition of shares), while the withheld shares are a routine tax/payment mechanism rather than an open-market sale.