Lead Independent Director Edward Kangas Sold A Bunch Of Shares In Hovnanian Enterprises

We wouldn't blame Hovnanian Enterprises, Inc. (NYSE:HOV) shareholders if they were a little worried about the fact that Edward Kangas, the Lead Independent Director recently netted about US$589k selling shares at an average price of US$107. Probably the most concerning element of the whole transaction is that the disposal amounted to 51% of their entire holding.

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The Last 12 Months Of Insider Transactions At Hovnanian Enterprises

Over the last year, we can see that the biggest insider sale was by the President, Ara Hovnanian, for US$4.6m worth of shares, at about US$237 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$113. So it may not shed much light on insider confidence at current levels.

Hovnanian Enterprises insiders didn't buy any shares over 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!

See our latest analysis for Hovnanian Enterprises

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

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Hovnanian Enterprises insiders own about US$158m worth of shares (which is 25% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all 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. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 4 warning signs for Hovnanian Enterprises (2 make us uncomfortable) you should be aware of.

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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.