Hovnanian (NYSE: HOV) CEO exercises 10,000 options with tax shares delivered
Rhea-AI Filing Summary
Hovnanian Enterprises Chairman and CEO Ara K. Hovnanian reported option-related activity in Class B Common Stock. On May 27, 2026, he exercised options covering 10,000 shares of Class B Common Stock at an exercise price of $56.75 per share.
Of the shares tied to this exercise, 3,494 shares of Class B Common Stock were delivered to satisfy tax obligations at a value of $112.75 per share, and the remainder increased his direct holdings to 339,119 Class B shares. The filing also lists numerous indirect holdings of Class B Common Stock held through various family trusts and related entities, with footnotes stating that beneficial ownership is disclaimed except for any potential pecuniary interest.
Positive
- None.
Negative
- None.
Insider Trade Summary
10,000 shares exercised/converted
Exercise
20 txns
Insider
HOVNANIAN ARA K
Role
Chairman of the Board & CEO
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Class B Common Stock | 5,000 | $56.75 | $284K |
| Exercise Price or Tax Liability | Class B Common Stock | 3,494 | $112.75 | $394K |
| Exercise | Option to purchase Class B Common Stock | 5,000 | $0.00 | $0.00 |
| holding | Class B Common Stock | -- | -- | -- |
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| holding | Class B Common Stock | -- | -- | -- |
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Holdings After Transaction:
Class B Common Stock — 335,625 shares (Direct);
Option to purchase Class B Common Stock — 0 shares (Direct);
Class B Common Stock — 5,328.4 shares (Indirect, Held as trustee for daughter Serena);
Class B Common Stock — 5,328.4 shares (Indirect, Held as trustee for son Alexander);
Class B Common Stock — 160 shares (Indirect, Held as trustee of the Alexander Hovnanian Trust);
Class B Common Stock — 160 shares (Indirect, Held as trustee of the Alton Hovnanian Trust);
Class B Common Stock — 157,434.56 shares (Indirect, Held as trustee of trust for Reporting Person's family);
Class B Common Stock — 25,281.4 shares (Indirect, Held as trustee of trusts for Esther K. Barry's family);
Class B Common Stock — 25,281.4 shares (Indirect, Held as trustee of trusts for Lucy K. Kalian's family);
Class B Common Stock — 25,281.4 shares (Indirect, Held as trustee of trusts for Nadia K. Rodriguez's family);
Class B Common Stock — 25,281.4 shares (Indirect, Held as trustee of trusts for Sossie K. Najarian's family);
Class B Common Stock — 50,507.51 shares (Indirect, Held by Ara K. Hovnanian Family 1994 long-term trusts);
Class B Common Stock — 5,125.28 shares (Indirect, Held by Reporting Person through partnership interests in the Limited Partnership.);
Class B Common Stock — 38,736.694 shares (Indirect, Held by trusts for Esther K. Barry's family);
Class B Common Stock — 42,034.92 shares (Indirect, Held by trusts for Kevork S. Hovnanian's family);
Class B Common Stock — 38,777.8564 shares (Indirect, Held by trusts for Lucy K. Kalian's family);
Class B Common Stock — 22,849.1972 shares (Indirect, Held by trusts for Nadia K. Rodriguez's family);
Class B Common Stock — 33,256.3364 shares (Indirect, Held by trusts for Sossie K. Najarian's family);
Class B Common Stock — 812 shares (Indirect, Held by wife)
Footnotes (15)
- F1. The Class B Common Stock, par value $.01 per share, non-cumulative ("Class B Common Stock"), is immediately convertible into an equal number of shares of Class A Common Stock, par value $.01 per share, non-cumulative ("Class A Common Stock")
- F2. No expiration date
- F3. N/A
- F4. Held by Ara K. Hovnanian 2012 Trust, of which the reporting person is trustee, including shares held through a limited liability company interest in the Hovnanian Family 2012 LLC (the "2012 LLC")
- F5. The Reporting Person disclaims beneficial ownership of these securities except to the extent of his potential pecuniary interest therein, and the inclusion of these shares in this report shall not be deemed an admission of the beneficial ownership of all of the reported shares for purposes of Section 16 or for any other purpose
- F6. Held by trusts for the benefit of the family of Esther K. Barry, of which the reporting person is a trustee and has a potential remainder interest, including shares held through a limited liability interest in the 2012 LLC
- F7. Held by trusts for the benefit of the family of Lucy K. Kalian, of which the reporting person is a trustee and has a potential remainder interest, including shares held through a limited liability interest in the 2012 LLC
- F8. Held by trusts for the benefit of the family of Nadia K. Rodriguez, of which the reporting person is a trustee and has a potential remainder interest, including shares held through a limited liability interest in the 2012 LLC
- F9. Held by trust for the benefit of the family of Sossie K. Najarian, of which the reporting person is a trustee and has a potential remainder interest, through a limited liability company interest in the 2012 LLC
- F10. Held by The Ara K. Hovnanian Family 1994 Long-Term Trust, of which the reporting person is trustee
- F11. Held by The Esther K. Barry Family 1994 Long-Term Trust, of which the reporting person is a trustee and has a potential remainder interest
- F12. Held by trusts for the benefit of the family of Kevork S. Hovnanian, of which the reporting person is a trustee and has a potential remainder interest
- F13. Held by The Lucy K. Kalian Family 1994 Long-Term Trust, of which the reporting person is a trustee and has a potential remainder interest
- F14. Held by The Nadia K. Rodriguez Family 1994 Long-Term Trust, of which the reporting person is a trustee and has a potential remainder interest
- F15. Held by The Sossie K. Najarian Family 1994 Long-Term Trust, of which the reporting person is a trustee and has a potential remainder interest
Key Figures
Options exercised: 10,000 shares
Option exercise price: $56.75/share
Shares for tax withholding: 3,494 shares
+4 more
7 metrics
Options exercised
10,000 shares
Class B Common Stock options exercised on May 27, 2026
Option exercise price
$56.75/share
Exercise price for 10,000 Class B options
Shares for tax withholding
3,494 shares
Class B shares delivered to satisfy tax obligations
Tax value per share
$112.75/share
Value used for tax-withholding share delivery
Direct Class B holdings
339,119 shares
Direct Class B Common Stock after transactions
Tax-withholding transactions
1 event
Code F disposition for tax obligations
Derivative exercises
2 exercises, 10,000 shares
M-code derivative exercises in this filing
Key Terms
Class B Common Stock, Class A Common Stock, Exercise or conversion of derivative security, tax-withholding disposition, +2 more
6 terms
Class B Common Stock financial
"The Class B Common Stock, par value $.01 per share, non-cumulative"
A class B common stock is one of multiple types of a company’s ordinary shares that carries specific rights—often different voting power or dividend priority—compared with other classes. For investors it matters because those differences affect how much influence you have over company decisions, the income you might receive, and how freely the shares trade; think of it like owning a car with different keys: some keys let you start the engine and open the trunk, others only unlock the door.
Class A Common Stock financial
"immediately convertible into an equal number of shares of Class A Common Stock"
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.
Exercise or conversion of derivative security financial
"transaction_code_description": "Exercise or conversion of derivative security""
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.
Section 16 regulatory
"reported shares for purposes of Section 16 or for any other purpose"
Section 16 is a U.S. securities law rule that governs the trading and disclosure obligations of company insiders — typically officers, directors and large shareholders — to promote transparency and deter unfair profit-taking. It requires insiders to publicly report their stock trades and allows companies or the issuer to reclaim quick, short-term profits from certain insider trades, like a scoreboard and a refund policy that help investors see and limit possible insider advantage.
beneficial ownership financial
"The Reporting Person disclaims beneficial ownership of these securities"
Beneficial ownership means the person or entity that actually enjoys the benefits of owning shares or other assets — such as receiving dividends, voting rights, or price gains — even if the legal title is held in another name. For investors it matters because knowing who truly controls and profits from a company reveals who can influence decisions, exposes potential conflicts of interest or hidden concentration of power, and affects transparency and risk in the stock.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What insider transactions did HOVNANIAN ENTERPRISES INC (HOV) report for Ara K. Hovnanian?
Ara K. Hovnanian exercised options for 10,000 shares of Class B Common Stock and had 3,494 shares delivered to cover tax obligations. Following these transactions, his direct Class B holdings increased to 339,119 shares, alongside substantial indirect holdings through family trusts and entities.
How were taxes handled on Ara K. Hovnanian’s HOV stock option exercise?
To satisfy tax obligations, 3,494 shares of Class B Common Stock were delivered at a value of $112.75 per share. This “F” code transaction is a tax-withholding disposition, meaning it reflects tax payment rather than an open-market sale of shares for investment reasons.
What are Ara K. Hovnanian’s direct Class B holdings in HOV after these transactions?
After the reported option exercise and tax-withholding share delivery, Ara K. Hovnanian directly holds 339,119 shares of Class B Common Stock. This figure reflects his direct ownership only and does not include additional indirect positions held through various family trusts and related entities.