Anyone interested in Hovnanian Enterprises, Inc. (NYSE:HOV) should probably be aware that the Lead Independent Director, Edward Kangas, recently divested US$474k worth of shares in the company, at an average price of US$86.21 each. That sale was 16% of their holding, so it does make us raise an eyebrow.
Check out our latest analysis for Hovnanian Enterprises
The Last 12 Months Of Insider Transactions At Hovnanian Enterprises
In the last twelve months, the biggest single sale by an insider was when the President, Ara Hovnanian, sold US$4.7m worth of shares at a price of US$101 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$84.85). So it may not shed much light on insider confidence at current levels.
Insiders in Hovnanian Enterprises didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Hovnanian Enterprises Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Hovnanian Enterprises insiders own 20% of the company, worth about US$103m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Hovnanian Enterprises Insiders?
An insider sold Hovnanian Enterprises shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hovnanian Enterprises. At Simply Wall St, we found 2 warning signs for Hovnanian Enterprises that deserve your attention before buying any shares.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.