We wouldn't blame Hovnanian Enterprises, Inc. (NYSE:HOV) shareholders if they were a little worried about the fact that Ara Hovnanian, the President recently netted about US$4.0m selling shares at an average price of US$141. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 9.4%.

Hovnanian Enterprises Insider Transactions Over The Last Year

Notably, that recent sale by President Ara Hovnanian was not the only time they sold 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. So we know that an insider sold shares at around the present share price of US$137. 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).

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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does Hovnanian Enterprises Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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. It's great to see that Hovnanian Enterprises insiders own 24% of the company, worth about US$198m. 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. And there weren't any purchases to give us comfort, over the last year. On the plus side, Hovnanian Enterprises makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Hovnanian Enterprises you should be aware of.

Of course Hovnanian Enterprises may not be the best stock to buy. So you may wish to see this free collection of high quality 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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