Possible Bearish Signals With Hovnanian Enterprises Insiders Disposing Stock

Simply Wall St

Over the past year, many Hovnanian Enterprises, Inc. (NYSE:HOV) insiders sold a significant stake in the company which may have piqued investors' interest. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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 Lead Independent Director, Edward Kangas, sold US$589k worth of shares at a price of US$107 per share. That means that even when the share price was below the current price of US$119, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 51% of Edward Kangas's stake.

In the last year Hovnanian Enterprises insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Hovnanian Enterprises

NYSE:HOV Insider Trading Volume October 11th 2025

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Hovnanian Enterprises Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at Hovnanian Enterprises. Specifically, President Ara Hovnanian ditched US$84k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership Of Hovnanian Enterprises

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Hovnanian Enterprises insiders own about US$168m 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.

So What Do The Hovnanian Enterprises Insider Transactions Indicate?

An insider sold Hovnanian Enterprises shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. 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. When we did our research, we found 3 warning signs for Hovnanian Enterprises (2 are a bit concerning!) that we believe deserve your full attention.

But note: Hovnanian Enterprises may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.