Robert H. Schottenstein, Chairman, CEO, and President of M/I Homes, Inc. (NYSE:MHO), has recently sold a significant portion of the company's stock. According to a recent SEC filing, Schottenstein sold common shares totaling approximately $573,404. The transactions occurred on November 25, 2024, with prices ranging from $171.45 to $171.79 per share.
Following these transactions, Schottenstein now directly owns 312,242 shares of M/I Homes. Additionally, he indirectly holds 189,587 common shares as the sole trustee and beneficiary of The Irving E. Schottenstein 2002 Trust No. 2. His spouse also beneficially owns 10,000 common shares, although Schottenstein disclaims beneficial ownership of these shares.
This series of transactions reflects Schottenstein's ongoing management of his holdings in the company, where he continues to play a pivotal leadership role.
In other recent news, M/I Homes reported a successful third quarter with record figures in home deliveries, revenue, and income. The company closed a record 2,271 homes in Q3, marking an 8% increase year-over-year. This growth resulted in a 9% rise in Q3 revenue to $1.1 billion, with year-to-date revenue reaching approximately $3.3 billion. Pre-tax income for the quarter also increased by 6% to $188.7 million, with a gross margin of 27.1%.
M/I Homes also maintained a robust financial position, with $2.8 billion in equity and a cash balance of $720 million. The mortgage segment saw a 31% increase in pre-tax income to $12.9 million and a 27% revenue increase to $30 million. The company's share repurchases totaled $50 million, with $157 million remaining under the current authorization.
CEO Bob Schottenstein expressed optimism for continued growth and strong performance in the future, despite potential upward pressure on insurance costs and downward pressure on margins. The company plans to expand its Smart Series offerings and attached townhomes, now 20% of the business, and anticipates a 5% increase in average community count for 2024. These recent developments reflect M/I Homes' resilience and commitment to growth in the housing market.
InvestingPro Insights
Robert H. Schottenstein's recent stock sale comes at a time when M/I Homes (NYSE:MHO) is experiencing significant market momentum. According to InvestingPro data, the company's stock has shown a remarkable 60.2% return over the past year, with a particularly strong 35.53% gain in the last six months. This upward trend aligns with an InvestingPro Tip highlighting MHO's "significant return over the last week," suggesting continued investor confidence.
Despite the CEO's sale, M/I Homes maintains a solid financial position. The company boasts a market capitalization of $4.48 billion and operates with a moderate level of debt, as noted by another InvestingPro Tip. This financial stability is further supported by the company's impressive profitability metrics, including a gross profit margin of 26.54% and an operating income margin of 15.43% for the last twelve months.
Investors considering MHO should note that while the stock's P/E ratio stands at 8.53, indicating potential undervaluation, the company does not pay dividends to shareholders. This information, coupled with the fact that analysts predict continued profitability for the company this year, may be crucial for those evaluating M/I Homes as an investment opportunity.
For a more comprehensive analysis, InvestingPro offers 9 additional tips and a range of financial metrics to help investors make informed decisions about M/I Homes and similar stocks in the real estate sector.
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