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M/I Homes sets $250 million share buyback plan

EditorNatashya Angelica
Published 05/13/2024, 04:25 PM
MHO
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COLUMBUS, Ohio - M/I Homes, Inc. (NYSE:MHO), a prominent national homebuilder, has announced a new share repurchase program authorized by its Board of Directors. Under this plan, the company may repurchase up to $250 million of its common stock. This new authorization supersedes the previous one, which had $103 million remaining as of April 30, 2024.

The company's management retains the discretion to decide the timing and volume of share repurchases, which will be subject to market conditions, share price, and other business and legal considerations. The repurchase program does not have an expiration date and can be amended, suspended, or discontinued at any time.

M/I Homes has a substantial presence in the United States, with homebuilding operations across various states including Ohio, Indiana, Illinois, Minnesota, Michigan, Florida, Texas, North Carolina, and Tennessee. The company's decision to initiate a stock repurchase reflects a strategic move to manage its capital and potentially enhance shareholder value.

The press release also contains forward-looking statements that are subject to risks and uncertainties. These statements are not guarantees of future performance, and actual results may vary due to a range of factors.

The company cautions that any forward-looking statements are valid only as of today, and it does not commit to updating them publicly except as required by law, despite the possibility that subsequent reports and statements may provide further information.

This announcement is based on a press release statement from M/I Homes, Inc. Investors are advised to consider the company's public filings and releases for further disclosures on related subjects.

InvestingPro Insights

M/I Homes, Inc. (NYSE:MHO) has been on the radar of investors following its announcement of a new share repurchase program. The move to buy back up to $250 million in common stock is a signal of confidence in the company's financial health and future prospects.

According to InvestingPro, M/I Homes is trading at a low earnings multiple, which could indicate that the stock is undervalued relative to its earnings. This is a key metric that savvy investors often look for when assessing the potential for stock buybacks to increase earnings per share.

Moreover, the company's stock price has experienced significant volatility, a factor that investors should consider when evaluating the timing of share repurchases. M/I Homes has also demonstrated a high return over the last year, suggesting that the company has been performing well in the market. This performance aligns with the company's strategy to manage capital effectively and could further bolster investor confidence.

For those interested in a deeper dive into M/I Homes' financials, InvestingPro offers additional insights. There are currently 11 more InvestingPro Tips available that could help investors make more informed decisions. These tips include an analysis of the company's liquidity, debt levels, and profitability projections for the current year. Potential investors can explore these insights by visiting: https://www.investing.com/pro/MHO and using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

InvestingPro Data metrics further reveal that M/I Homes operates with a moderate level of debt and has liquid assets that exceed its short-term obligations, which could provide additional comfort to investors considering the company's ability to navigate market fluctuations and invest in its own shares. While MHO does not pay a dividend, the repurchase program could be an alternative way to reward shareholders.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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