HOVNANIAN ARA K 4

What Happened
Ara K. Hovnanian (reported as a 10% owner and trustee of family trusts) had 17,575 derivative shares disposed on June 12, 2026 to satisfy an exercise price or tax liability — 17,575 shares x $120.72 = $2,121,654 (reported as code F). On the same date he was granted two awards (code A) totaling 34,208 units (18,936 + 15,272) as derivative awards (performance share units / phantom shares) with no immediate cash value reported. These actions are not open-market buys or sells of common stock but internal award issuance and tax/withholding-related disposition.

Key Details

• Transaction date: 2026-06-12; Filing date: 2026-06-16 (timely under Section 16 rules).
• Disposition: 17,575 derivative shares withheld at $120.72 each = $2,121,654 (code F — payment of exercise price or tax liability).
• Grants: 18,936 and 15,272 derivative units granted (code A) — total 34,208 units; reported as $0 value at grant.
• Post-transaction total shares: not specified in the provided excerpt.
• Notable footnotes: Class B shares convert one-for-one into Class A (F1/F5); awards include performance share units and phantom shares that vest/pay out subject to service and performance conditions and may pay in cash or Class B shares (F3–F9). The number of shares/phantom shares that ultimately vest/pay may vary from 50% to 200% based on performance (F6/F10). Many holdings are held via family trusts/2012 LLC and the reporting person disclaims beneficial ownership except for pecuniary interest (F11–F22, F12).

Context

• The 17,575-share disposition was a withholding/settlement to cover exercise price or taxes (routine for exercised awards), not an open-market sale indicating a directional trade.
• The grants are performance-based/phantom awards with multi-year vesting and possible cash or share settlement; they may not convert to (or be paid as) tradable stock until vesting/settlement dates (some settlement referenced as late as 2031).
• As a 10% owner and trustee, these filings reflect family trust holdings and compensation-related award activity rather than routine executive open-market buying or selling.