Hovnanian director exercises options, pays tax in stock
Hovnanian Enterprises director J. Larry Sorsby reported routine equity compensation activity involving Class A common stock.
Rhea-AI Filing Summary
Hovnanian Enterprises director J. Larry Sorsby reported routine equity compensation activity involving Class A common stock. An entity identified as a SLAT exercised 5,000 shares under an employee stock option at $56.75 per share, converting options into common stock held indirectly.
To cover tax obligations, the SLAT delivered 3,068 shares of Class A common stock at $116.00 per share in a tax-withholding disposition, rather than selling shares on the open market. After these transactions, Sorsby held 187,524 shares directly, 3,784 shares indirectly through the SLAT, and 3,846 shares indirectly through his spouse.
Positive
- None.
Negative
- None.
Insider Trade Summary
5,000 shares exercised/converted
Exercise
5 txns
Insider
SORSBY J LARRY
Role
Director
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Employee Stock Option (right to buy) | 5,000 | $0.00 | $0.00 |
| Exercise | Class A Common Stock | 5,000 | $56.75 | $284K |
| Exercise Price or Tax Liability | Class A Common Stock | 3,068 | $116.00 | $356K |
| holding | Class A Common Stock | -- | -- | -- |
| holding | Class A Common Stock | -- | -- | -- |
Holdings After Transaction:
Employee Stock Option (right to buy) — 0 contracts (Indirect, By SLAT);
Class A Common Stock — 3,784 shares (Indirect, By SLAT);
Class A Common Stock — 187,524 shares (Direct);
Class A Common Stock — 3,846 shares (Indirect, Held by Spouse)
Footnotes (2)
- F1. The option is fully vested
- F2. N/A
Key Figures
Options exercised: 5,000 shares
Exercise price: $56.75 per share
Shares for tax withholding: 3,068 shares
+4 more
7 metrics
Options exercised
5,000 shares
Employee stock option exercise at $56.75 per share
Exercise price
$56.75 per share
Conversion or exercise price for 5,000 options
Shares for tax withholding
3,068 shares
Tax-withholding disposition at $116.00 per share
Tax withholding price
$116.00 per share
Value applied to 3,068 shares delivered for taxes
Direct holdings after transaction
187,524 shares
Class A common stock held directly by Sorsby
Indirect SLAT holdings after transaction
3,784 shares
Class A common stock held indirectly by SLAT
Spouse-held shares
3,846 shares
Class A common stock held indirectly by spouse
Key Terms
Employee Stock Option (right to buy), tax-withholding disposition, derivative security, Class A Common Stock, +1 more
5 terms
Employee Stock Option (right to buy) financial
"security_title: "Employee Stock Option (right to buy)""
tax-withholding disposition financial
"transaction_action: "tax-withholding disposition" for 3,068 shares"
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 security financial
"transaction_code_description: "Exercise or conversion of derivative security""
A derivative security is a financial contract whose value comes from the price or performance of something else, such as a stock, bond, commodity, or market index. For investors it acts like an insurance policy or a wager: it can be used to protect against losses, lock in prices, or amplify gains and losses, so it can change a portfolio’s risk and potential return without owning the underlying asset directly.
Class A Common Stock financial
"security_title: "Class A Common Stock" in multiple transactions"
Class A common stock is a category of a company’s shares that carries a specific set of ownership rights—most commonly defined voting power and claims on dividends—set out in the company’s charter. For investors it matters because the class determines how much influence you have over corporate decisions, the share’s likely dividend and trading behavior, and how it compares in value to other share classes, like choosing a particular seat with different privileges at the company’s decision-making table.
indirect ownership financial
"ownership_type: "indirect" and nature_of_ownership: "By SLAT""
FAQ
What did HOV director J. Larry Sorsby report in this Form 4?
J. Larry Sorsby reported option-related transactions in Hovnanian Enterprises Class A common stock. A SLAT exercised 5,000 stock options at $56.75 per share and used 3,068 shares at $116.00 per share to satisfy tax obligations, with no open-market sale disclosed.
How were taxes handled on the HOV stock option exercise?
To cover tax obligations from the option exercise, the SLAT delivered 3,068 shares of Hovnanian Enterprises Class A common stock at $116.00 per share. This F-code transaction is a tax-withholding disposition, not an open-market sale, and reduces the SLAT’s post-transaction share balance.
What are J. Larry Sorsby’s HOV holdings after these transactions?
Following the reported transactions, J. Larry Sorsby directly owned 187,524 Hovnanian Enterprises Class A shares, with 3,784 shares held indirectly through a SLAT and 3,846 shares held indirectly by his spouse, reflecting both direct and family-related ownership positions.
AI-generated analysis. How Rhea-AI works. Not financial advice.
