Armour Residential director converts phantom stock
Armour Residential REIT director John P. Hollihan III reported compensation-related stock transactions, not open-market trading.
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Form Type
4
Rhea-AI Filing Summary
Armour Residential REIT director John P. Hollihan III reported compensation-related stock transactions, not open-market trading. On May 21, 2026, he exercised 1,900 units of phantom stock, converting 1,140 units into an equal number of common shares and using 760 shares to cover income taxes. The filing also notes that his holdings include 5,019 common shares previously acquired through the company’s dividend reinvestment plan.
Insider Trade Summary
1,900 shares exercised/converted
Exercise
3 txns
Insider
HOLLIHAN JOHN P III
Role
Director
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Phantom Stock | 1,900 | $0.00 | $0.00 |
| Exercise | Common Stock | 1,900 | $0.00 | $0.00 |
| Exercise Price or Tax Liability | Common Stock | 760 | $16.47 | $13K |
Holdings After Transaction:
Phantom Stock — 30,254 contracts (Direct);
Common Stock — 20,241 shares (Direct)
Footnotes (3)
- F1. On May 21, 2026, the reporting person elected to convert 1,140 shares out of 1,900 shares of vested phantom stock into 1,140 shares of ARMOUR common stock. The person elected to convert the remaining 760 shares of vested phantom stock into cash solely to pay income taxes on the vested stock. The 1,900 shares are part of, and relate to, phantom stock vesting over a five-year period, which was reported on a Form 4 filed by the reporting person on February 14, 2023, December 18, 2025 and May 21, 2026.
- F2. Includes 5,019 shares of common stock (25,095 shares prior to ARMOUR's one-for-five reverse stock split effective September 29, 2023) acquired in multiple transactions from February 2019 to April 2023 pursuant to the issuer's dividend reinvestment plan, which were not previously reported.
- F3. Each unit of phantom stock is the economic equivalent of one share of ARMOUR common stock.
Key Figures
Phantom stock units exercised: 1,900 units
Shares converted from phantom stock: 1,140 shares
Shares for tax withholding: 760 shares
+2 more
5 metrics
Phantom stock units exercised
1,900 units
Vested phantom stock converted on May 21, 2026
Shares converted from phantom stock
1,140 shares
Common shares received from phantom stock conversion
Shares for tax withholding
760 shares
Used solely to pay income taxes on vested stock
DRIP shares now reported
5,019 shares
Dividend reinvestment plan shares acquired 2019–2023
Phantom stock balance after conversion
30,254 units
Total phantom stock units reported after the transaction
Key Terms
phantom stock, dividend reinvestment plan, reverse stock split, tax-withholding disposition, +1 more
5 terms
phantom stock financial
"Each unit of phantom stock is the economic equivalent of one share of ARMOUR common stock."
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.
dividend reinvestment plan financial
"acquired in multiple transactions from February 2019 to April 2023 pursuant to the issuer's dividend reinvestment plan"
A dividend reinvestment plan lets shareholders automatically use cash dividends to buy more shares of the same company instead of receiving the money. It matters to investors because it turns regular payouts into a steady way to grow ownership and take advantage of compound returns—like having your savings automatically buy additional slices of a pie over time—while often reducing transaction costs and smoothing purchase timing.
reverse stock split financial
"prior to ARMOUR's one-for-five reverse stock split effective September 29, 2023"
A reverse stock split reduces a company's number of outstanding shares while raising the price per share proportionally, so the total value of each investor's holding is unchanged; a 1-for-10 split turns 100 shares worth $1 each into 10 shares worth $10 each. Companies often do this to regain compliance with an exchange's minimum price rule or to attract investors who avoid very low-priced stocks.
tax-withholding disposition financial
"transaction_action": "tax-withholding disposition""
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.
derivative exercise/conversion financial
"transaction_action": "derivative exercise/conversion""
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What did ARR director John P. Hollihan report in this Form 4?
He reported compensation-related stock activity, not open-market trading. On May 21, 2026, 1,900 phantom stock units vested, with 1,140 converted into common shares and 760 shares used to pay income taxes on the vested stock.
How many Armour Residential (ARR) phantom stock units were converted?
A total of 1,900 phantom stock units were involved. According to the filing, 1,140 units were converted into an equal number of Armour common shares, while the remaining 760 units were effectively converted into cash to satisfy income tax obligations.
Was the ARR Form 4 transaction an open-market purchase or sale?
No, it was not an open-market trade. The Form 4 shows a derivative exercise of phantom stock and a tax-withholding disposition coded "M" and "F," indicating compensation-related activity rather than discretionary buying or selling in the market.
What are phantom stock units at Armour Residential REIT (ARR)?
Each phantom stock unit is economically equivalent to one share of ARR common stock. When vested and exercised, these units can be settled in shares or cash, aligning the director’s compensation with the company’s share performance without immediate cash outlay by the company.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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