Armour Residential (NYSE: ARR) CIO turns phantom stock into shares and tax cash
Rhea-AI Filing Summary
Armour Residential REIT, Inc. Co-Chief Investment Officer Sergey Losyev reported compensation-related equity activity. On May 21, 2026, he elected to convert 1,500 vested phantom stock units, turning 1,219 units into the same number of common shares and converting the remaining 281 units into cash solely to pay income taxes on the vested stock.
Following these transactions, he directly holds 6,069.539 shares of common stock, including 60.539 shares in a self-directed rollover IRA, and 22,500 units of phantom stock, each economically equivalent to one common share. The Form 4 reflects an option exercise and tax-withholding disposition rather than an open-market trade.
Positive
- None.
Negative
- None.
Insider Trade Summary
Net Buyer: 1,219 shares
Net Buy
3 txns
Insider
Losyev Sergey
Role
Co-Chief Investment Officer
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Phantom Stock | 1,500 | $0.00 | $0.00 |
| Exercise | Common Stock | 1,500 | $0.00 | $0.00 |
| Exercise Price or Tax Liability | Common Stock | 281 | $16.47 | $5K |
Holdings After Transaction:
Phantom Stock — 22,500 shares (Direct);
Common Stock — 6,069.539 shares (Direct)
Footnotes (3)
- F1. On May 21, 2026, the reporting person elected to convert 1,219 of the 1,500 shares of vested phantom stock into 1,219 shares of ARMOUR common stock. The reporting person elected to convert the remaining 281 shares of vested phantom stock into cash solely to pay income taxes on the vested stock. The 1,500 shares are part of, and relate to, phantom stock vesting over a five-year period, which was reported on a Form 4 report filed by the reporting person on April 30, 2025.
- F2. 60.539 share are held in reporting person's self-directed rollover IRA account. 7.695 of which were acquired through dividend reinvestment since March 28, 2024.
- F3. Each unit of phantom stock is the economic equivalent of one share of ARMOUR common stock.
Key Figures
Phantom stock units converted: 1,500 units
Common shares received: 1,219 shares
Units converted to cash for taxes: 281 units
+4 more
7 metrics
Phantom stock units converted
1,500 units
Vested phantom stock converted on May 21, 2026
Common shares received
1,219 shares
Converted from phantom stock into Armour common stock
Units converted to cash for taxes
281 units
Phantom stock converted solely to pay income taxes
Shares outstanding after transaction
6,350.539 shares
Common stock directly held following Form 4 transactions
Phantom stock units remaining
22,500 units
Phantom stock position after the May 21, 2026 conversion
IRA-held common shares
60.539 shares
Held in self-directed rollover IRA account
Dividend reinvestment acquisitions
7.695 shares
Common shares acquired via dividend reinvestment since March 28, 2024
Key Terms
phantom stock, tax-withholding disposition, economic equivalent, self-directed rollover IRA, +1 more
5 terms
phantom stock financial
"On May 21, 2026, the reporting person elected to convert 1,219 of the 1,500 shares of vested phantom stock into 1,219 shares..."
A phantom stock is a form of compensation that gives employees or executives the benefits of stock ownership, such as the increase in stock value, without actually giving them real shares. It acts like a promise to pay the employee the equivalent value of company stock later, often as a bonus or incentive. This allows companies to motivate and reward staff without diluting ownership or transferring actual shares.
tax-withholding disposition financial
"Payment of exercise price or tax liability by delivering securities"
A tax-withholding disposition is an event or transaction—such as selling or transferring securities, exercising options, or receiving compensation—that triggers a requirement to hold back part of the payment and remit it to tax authorities. It matters to investors because it reduces the cash they receive immediately and can change the timing and amount of taxable income, like a cashier taking a portion of your sale proceeds to pay taxes before you get the rest.
economic equivalent financial
"Each unit of phantom stock is the economic equivalent of one share of ARMOUR common stock."
self-directed rollover IRA financial
"60.539 share are held in reporting person's self-directed rollover IRA account."
dividend reinvestment financial
"7.695 of which were acquired through dividend reinvestment since March 28, 2024."
Dividend reinvestment is when the money earned from a company's profit sharing, called dividends, is automatically used to buy more shares of that company instead of being received as cash. This process helps investors grow their holdings over time without extra effort, much like using earned interest to buy more of a savings account. It encourages long-term investment growth by continuously increasing the amount of shares owned.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What did ARR Co-Chief Investment Officer Sergey Losyev report on this Form 4?
Sergey Losyev reported converting 1,500 vested phantom stock units on May 21, 2026. He received 1,219 Armour Residential REIT common shares and converted the remaining 281 units into cash solely to cover income taxes on the vested stock.
What happened to the 1,500 units of phantom stock reported by ARR’s Co-Chief Investment Officer?
Losyev elected to convert 1,500 vested phantom stock units on May 21, 2026. He turned 1,219 units into common shares and converted 281 units into cash solely to pay income taxes related to the vesting of this stock-based compensation.
What is phantom stock in the context of Armour Residential REIT (ARR)?
Each unit of phantom stock is the economic equivalent of one Armour Residential REIT common share. It is a form of stock-based compensation that tracks the value of common stock and can be converted into shares or cash upon vesting events.
How many phantom stock units does ARR’s Co-Chief Investment Officer hold after this filing?
After the reported conversion, Losyev holds 22,500 units of phantom stock. According to the filing, each phantom stock unit is economically equivalent to one share of Armour Residential REIT common stock, representing a continuing equity-linked compensation position.