Some Hovnanian Enterprises, Inc. (NYSE:HOV) shareholders may be a little concerned to see that the President, Ara Hovnanian, recently sold a substantial US$1.1m worth of stock at a price of US$154 per share. However, that sale only accounted for 2.4% of their holding, so arguably it doesn't say much about their conviction.
Hovnanian Enterprises Insider Transactions Over The Last Year
In fact, the recent sale by President Ara Hovnanian was not their only sale of Hovnanian Enterprises shares this year. They previously made an even bigger sale of -US$4.5m worth of shares at a price of US$143 per share. That means that an insider was selling shares at around the current price of US$142. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
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. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Hovnanian Enterprises better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership Of Hovnanian Enterprises
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Hovnanian Enterprises insiders own about US$198m worth of shares (which is 24% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Hovnanian Enterprises Tell Us?
Insiders 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. But since Hovnanian Enterprises is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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