M/I Homes, Inc. (NYSE:MHO) has reported recent stock transactions by Chairman, CEO & President Robert H. Schottenstein, which involved both the acquisition and disposal of company shares. According to the latest filings, Schottenstein sold a total of 2,089 common shares, with the sales transactions valued at over $347,000. These sales were executed at prices ranging from $165.24 to $167.63 per share.
The transactions occurred on August 1, 2024, and were disclosed in a Form 4 filing with the Securities and Exchange Commission. In addition to the sales, Schottenstein also acquired 2,089 M/I Homes common shares through the exercise of options at a price of $42.23 per share, totaling approximately $88,218.
Following these transactions, Schottenstein's direct ownership in the company has been adjusted to reflect a total of 123,651 common shares. It is important to note that the reported shares also include those beneficially owned by IES Family Holdings No. 2, LLC, an entity for which Schottenstein serves as the sole manager, as well as shares owned by his spouse, which he disclaims beneficial ownership of for the purposes of Section 16 or any other purpose.
Investors and market watchers often pay close attention to insider transactions as they can provide insights into executives' perspectives on the company's current valuation and future prospects. The recent activity by M/I Homes' CEO may thus be of interest to current and potential shareholders.
M/I Homes, Inc., based in Columbus, Ohio, is a leading builder of single-family homes. The company operates in the real estate and construction sector, with a focus on operative builders.
In other recent news, M/I Homes reported a record Q2 revenue and an optimistic outlook for 2024. The national homebuilder witnessed a 12% increase in home closings year-over-year, with 2,224 homes closed, and revenue reaching an impressive $1.1 billion. Despite facing a slowdown in demand and traffic during the quarter, the company experienced an uptick in orders in June.
M/I Homes also reported considerable gross and pre-tax margins of 28% and 17.5% respectively. The company's balance sheet remains strong, boasting $2.7 billion of equity, $800 million in cash, and no borrowings. M/I Homes also holds approximately 23,000 lots, indicating a three-year supply.
While demand and traffic have slowed, the company's mortgage and title operations saw a 29% increase in pre-tax income from the previous year. M/I Homes is planning to open approximately 80 new stores this year, despite some uncertainties in the demand and incentive environment. The company remains confident in its strategic direction and financial health, as evidenced by its strong balance sheet and management's positive outlook for the future.
InvestingPro Insights
M/I Homes, Inc. (NYSE:MHO) has shown a robust financial performance and market activity that may interest investors, particularly following the recent insider transactions by CEO Robert H. Schottenstein. An analysis of real-time data from InvestingPro reveals several key metrics that could provide a deeper understanding of the company's current market position.
As of the last twelve months leading up to Q2 2024, M/I Homes boasts a market capitalization of approximately $4.2 billion, underscoring its significant presence in the operative builders sector. The company's earnings multiple appears attractive, with an adjusted P/E ratio of 7.96, suggesting that the stock is trading at a low earnings multiple compared to its earnings potential. Additionally, M/I Homes has demonstrated a strong return over the past year, with a 63.49% price total return, highlighting the company's robust growth trajectory in the market.
InvestingPro Tips for M/I Homes indicate that the stock price movements have been quite volatile, which may appeal to certain investors looking for dynamic trading opportunities. Also, the company's liquid assets have been reported to exceed short-term obligations, indicating a healthy liquidity position that could reassure investors of the company's financial stability.
For those interested in further analysis and tips, InvestingPro lists an additional 12 InvestingPro Tips for M/I Homes, which can be explored in detail at https://www.investing.com/pro/MHO. These tips include insights into the company's profitability predictions for the year, its operational debt levels, and dividend policies, all of which are crucial factors for investment decisions.
With the next earnings date set for October 23, 2024, investors and analysts will be keenly watching M/I Homes' performance. The company's fair value, as assessed by InvestingPro, stands at $184.4, suggesting potential upside from the previous close price of $160.73.
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