Robert H. Schottenstein, Chairman, CEO, and President of M/I Homes, Inc. (NYSE:MHO), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Schottenstein sold a total of 11,721 common shares on November 25, 2024. The sales were executed at prices ranging from $170.99 to $171.15 per share, amounting to a total transaction value of approximately $2,007,351.
Following these transactions, Schottenstein retains direct ownership of 320,422 common shares in M/I Homes. Additionally, he indirectly owns 189,587 common shares as the sole trustee and beneficiary of The Irving E. Schottenstein 2002 Trust No. 2. His spouse also holds 10,000 shares, which Schottenstein disclaims beneficial ownership of.
These transactions are part of routine financial activities and reflect Schottenstein's ongoing management of his investment portfolio. M/I Homes is a leading builder of single-family homes, with a strong presence across several U.S. markets.
In other recent news, M/I Homes, Inc. reported record third-quarter results, showcasing an impressive performance despite macroeconomic challenges and natural disasters. The company noted an 8% year-over-year increase in home closures, resulting in a total of 2,271 homes for the quarter. This growth contributed to a 9% rise in Q3 revenue, reaching $1.1 billion, and a 6% increase in pre-tax income, amounting to $188.7 million.
These recent developments also include a 31% increase in the mortgage segment's pre-tax income and a 27% revenue increase to $30 million. Furthermore, M/I Homes maintains a strong financial position with equity of $2.8 billion and a cash balance of $720 million. The company also repurchased stocks worth $50 million.
In terms of future expectations, M/I Homes anticipates continued growth and strong performance, with plans to expand its Smart Series offerings and attached townhomes. However, there are potential challenges ahead, including upward pressure on insurance costs post-hurricane and downward pressure on margins due to increased incentives and rate buy-downs. Despite these, the company remains optimistic for the spring selling season and continues to focus on share repurchases and pricing strategies.
InvestingPro Insights
The recent stock sale by M/I Homes' CEO Robert H. Schottenstein comes at a time when the company's shares have shown significant momentum. According to InvestingPro data, MHO has experienced a substantial 60.2% price return over the past year, with a notable 35.53% gain in the last six months alone. This upward trajectory aligns with one of the InvestingPro Tips, which highlights the "high return over the last year" for MHO stock.
Despite the recent insider sale, M/I Homes' financial health appears robust. The company boasts a price-to-earnings (P/E) ratio of 8.53, suggesting a potentially undervalued position relative to earnings. Moreover, MHO's revenue for the last twelve months stands at $4.27 billion, with a healthy gross profit margin of 26.54%.
InvestingPro Tips also indicate that M/I Homes "operates with a moderate level of debt" and that "liquid assets exceed short-term obligations," both positive indicators of the company's financial stability. These factors may provide context for why the CEO's stock sale might not necessarily signal concerns about the company's future prospects.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for M/I Homes, providing deeper insights into the company's financial position and market performance.
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