Hovnanian CFO exercises options, covers tax with shares
Hovnanian Enterprises CFO Brad G. O'Connor reported routine equity compensation activity involving company stock.
Rhea-AI Filing Summary
Hovnanian Enterprises CFO Brad G. O'Connor reported routine equity compensation activity involving company stock. On May 27, 2026, he exercised employee stock options to acquire a total of 3,000 shares of Class A Common Stock at an exercise price of $42.50 per share. In connection with this, a total of 1,109 shares of Class A Common Stock were disposed of at $115.095 per share to cover tax liabilities, which is reflected by transaction code F for tax-withholding dispositions. These entries show option exercises and related tax payments, with no open‑market purchases or sales reported in this filing.
Positive
- None.
Negative
- None.
Insider Trade Summary
3,000 shares exercised/converted
Exercise
6 txns
Insider
O'Connor Brad G
Role
CFO
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Employee Stock Option (right to buy) | 1,000 | $0.00 | $0.00 |
| Exercise | Employee Stock Option (right to buy) | 2,000 | $0.00 | $0.00 |
| Exercise | Class A Common Stock | 2,000 | $42.50 | $85K |
| Exercise | Class A Common Stock | 1,000 | $42.50 | $43K |
| Exercise Price or Tax Liability | Class A Common Stock | 370 | $115.095 | $43K |
| Exercise Price or Tax Liability | Class A Common Stock | 739 | $115.095 | $85K |
Holdings After Transaction:
Employee Stock Option (right to buy) — 0 contracts (Direct);
Class A Common Stock — 39,189 shares (Direct)
Footnotes (3)
- F1. Adjusted for the Issuer's 1-for-25 reverse stock split with respect to the Class A Common Stock, par value $.01 per share, non-cumulative ("Class A Common Stock"), that occurred on March 29, 2019.
- F2. The option is fully vested
- F3. N/A
Key Figures
Options exercised: 3,000 shares
Tax-withholding shares: 1,109 shares
Option exercise price: $42.50 per share
+1 more
4 metrics
Options exercised
3,000 shares
Employee stock options exercised on May 27, 2026
Tax-withholding shares
1,109 shares
Shares disposed to cover tax liabilities on May 27, 2026
Option exercise price
$42.50 per share
Exercise price for employee stock options
Tax-withholding price
$115.095 per share
Price used for tax-withholding share dispositions
Key Terms
Employee Stock Option (right to buy), reverse stock split, tax-withholding disposition, derivative security, +1 more
5 terms
Employee Stock Option (right to buy) financial
"security_title: "Employee Stock Option (right to buy)""
reverse stock split financial
"Adjusted for the Issuer's 1-for-25 reverse stock split with respect to the Class A Common Stock"
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 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""
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.
FAQ
What insider transactions did HOV (Hovnanian Enterprises) report for its CFO?
Hovnanian Enterprises CFO Brad G. O'Connor exercised employee stock options for 3,000 Class A shares and had 1,109 shares withheld to cover taxes. All transactions occurred on May 27, 2026 and were related to equity compensation rather than open-market trading.
What was the exercise price for the CFO’s HOV employee stock options?
The reported employee stock options were exercised at an exercise price of $42.50 per share. This fixed price applies to the 3,000 underlying Class A Common shares and is separate from the higher market price used for the tax-withholding share dispositions.
Were any of the HOV CFO’s transactions open-market buys or sells?
No open-market purchases or sales were reported for the CFO in this Form 4. The filing only shows option exercises (code M) and tax-withholding dispositions (code F), which are compensation-related and driven by tax obligations rather than discretionary trading decisions.
What do codes M and F mean in the HOV CFO’s Form 4 transactions?
Code M indicates the exercise or conversion of a derivative security, such as employee stock options, into common shares. Code F denotes shares disposed of to pay the exercise price or related tax liabilities, typically through share withholding rather than market sales.
AI-generated analysis. How Rhea-AI works. Not financial advice.
